Business, 12.02.2020 02:50, raiindrxp

The following passage refers to the operation of a free-market economy. Cross-out the words (in italics) which are incorrect. In a totally free-market economy, the quantities of each type of good that are bought and sold, and the amounts of factors of production (labor, land and capital) that are used, are determined by the decisions of individual households and firms through the interaction of demand and supply. In goods markets, households are suppliers / demanders and firms are suppliers / demanders. In labour markets, households are suppliers / demanders and firms are suppliers / demanders. Demand and supply are brought into balance by the effects of changes in price. If supply exceeds demand in any market (a surplus), the price will rise / fall / stay the same. This will lead to a rise in the quantity both demanded and supplied / a fall in the quantity both demanded and supplied / a rise in the quantity demanded but a fall in the quantity supplied / a rise in the quantity supplied but a fall in the quantity demanded. If, however, demand exceeds supply in any market (a shortage), the price will fall / rise / stay the same. This will lead to a fall / rise in the quantity demanded and a fall / rise in the quantity supplied. In either case the adjustment of price will ensure that demand and supply are brought into equilibrium, with any shortage or surplus being eliminated.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 22:30, weeblordd

Chip wilson has hired goldman sachs, an investment banking company, to assist him with a hostile takeover of lululemon. wilson's goal is to hire a new board of directors because he believes there is a need for a more long-term focus. goldman sachs is a proven firm at making a profit in every move that they make. if the hostile takeover does not pan out, what could be another motive for investors?

Answers: 1

continue

Business, 22.06.2019 04:30, juliashalnev

The lee family is looking to buy a house in one of two suburban areas just outside of a major city, and air quality is a top priority for them. overall air quality is calculated by taking measures in 100 locations within each suburb and then calculating a measure of central tendency. in one suburb, there is a major bus station that creates very poor air quality at its location but has no impact in the surrounding parts of the suburb. in this situation, which measure of overall suburb air quality would be most useful?

Answers: 3

continue

Business, 22.06.2019 15:20, rasv3491

Garfield corporation is considering building a new plant in canada. it predicts sales at the new plant to be 50,000 units at $5.00/unit. below is a listing of estimated expenses. category total annual expenses % of annual expense that are fixed materials $50,000 10% labor $90,000 20% overhead $40,000 30% marketing/admin $20,000 50% a canadian firm was contracted to sell the product and will receive a commission of 10% of the sales price. no u. s. home office expenses will be allocated to the new facility. the contribution margin ratio for garfield corporation is

Answers: 2

continue

Business, 22.06.2019 17:00, whitakers87

Dan wants to start a supermarket in his hometown, and wants to get into the business only after finding out about the market and how successful his business might be. the best way for dan to gain knowledge is to:

Answers: 2

continue

Do you know the correct answer?

The following passage refers to the operation of a free-market economy. Cross-out the words (in ital...