Business, 08.04.2020 02:53 tay3270

From an initial equilibrium, suppose there’s an increase in demand. Once the market reaches its new equilibrium, there will be a. fewer transactions, and they will take place at a higher price. b. more transactions, and they will take place at a higher price. c. more transactions, and they will take place at a lower price. d. fewer transactions, and they will take place at a lower price.

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Answer from: mgwlisp

b. more transactions, and they will take place at a higher price.

Explanation:

The markets are at equilibrium where market demand = market supply. And; the downward sloping demand curve (inversely related to price), upward sloping supply curve (directly related to price) intersect.

From initial equilibrium, if there is increase in demand : Increase in demand shifts demand curve rightwards. This creates excess demand at the previous equilibrium price. Excess demand leads competition among buyers, increases the equilibrium price. At new higher equilibrium price, quantity supplied expands & quantity demanded (at the new increased demand curve) contracts. The new equilibrium quantity is then determined at a higher equilibrium quantity.

The new higher equilibrium price & quantity are determined at the intersection of new increased (rightwards shifted) demand curve with the supply curve {as per the above explained mechanism}

Answer from: Quest

$2.00 for three shots.

Answer from: Quest

$527.7.if the following was the question $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

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From an initial equilibrium, suppose there’s an increase in demand. Once the market reaches its new...

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