A decrease in the supply of steel results in a shortage of steel at the original equilibrium price. Explain how market forces will act to eliminate the shortage
What will be an ideal response?
The price of steel will rise. As it rises, the quantity of steel supplied will rise and the quantity of steel demanded will fall. Eventually, at the new market equilibrium price, quantity demanded will be equal to quantity supplied. The market will be in equilibrium.
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________ quantity theory of money suggests that the demand for money is purely a function of income, and interest rates have no effect on the demand for money
A) Keynes's B) Fisher's C) Friedman's D) Tobin's
A firm produces 100 . units per week. It hires 10 full-time workers (40 hours/week) at an hourly wage of $20 . Raw materials are ordered weekly and they costs $5 for every unit produced. The weekly cost of the rent payment for the factory is $1,500 . How do the overall costs breakdown for the week?
a. total variable cost is $5,000 . total fixed cost is $1,500 . total cost is $6,500 b. total variable cost is $5,000 . total fixed cost is $9,500 . total cost is $14,500 c. total variable cost is $13,000 . total fixed cost is $1,500 . total cost is $14,500 d. total variable cost is $13,000 . total fixed cost is $9,500 . total cost is $22,500