The increase in demand for tire makers, steel and aluminium suppliers is an example of derived demand.
Derived demand is the demand for a good or service as a result of an increase in the demand for another good or service. Labour and raw materials usually have a derived demand.
As the demand for new cars increase, car makers would want to produce more cars in order to meet the increased demand. This would lead to an increase in the raw materials and labour that is needed to make more cars. On the other hand, if there is a decrease in the demand for new cars, there would also be a decrease in the demand for the raw materials and labour that is needed to make more cars.
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I don’t know the question
Answer:
option b) -0.35%
Explanation:
For tax rate = 40%
After after-tax cost of debt = cost of debt × ( 1 - Rate )
= 7% × ( 1 - 0.40 )
= 4.20%
For tax rate = 45%
After after-tax cost of debt = cost of debt × ( 1 - Rate )
= 7% × ( 1 - 0.45 )
= 3.85%
Therefore, the change in cost of debt = 3.85% - 4.20% = -0.35%
Hence,
Correct answer is option b) -0.35%
Answer:
greater; higher than
Explanation:
Here is the complete question
If the supply of aisle seats equals the supply of middle seats on an airplane, and the demand for aisle seats is _____________ than the demand for middle seats, then the equilibrium price of aisle seats will be ______________ the equilibrium price of middle seats
.a. greater; higher than
b. less; higher than
c. greater; lower than
d. less; the same as
Equilibrium price is the price at which quantity demand equal quantity supplied. Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded.
Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied
If the demand for aisle seats exceeds the demand for middle seats, it means that equilibrium price for aisle seat would exceed equilibrium price