Answer:
Price floor binding
b. price ceiling binding
price floor and binding
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
The minimum price of milk is above equilibrium price. So, it is a binding price floor
The maximum price of milk is below equilibrium price. It is binding price ceiling
If teenagers can't find jobs due to minimum wages law. It means that the minimum wage must be above equilibrium price. This is because it is when price is above equilibrium price that supply of labour outstrips demand. So, it is a binding price floor
Milk is used in the production of cheese. Cheese and tofu are close substitutes in consumption. Milk and Oreos are complements in consumption. Suppose that the price of Oreos increases, how does this affect the market for tofu?
The correct answer is decreasing in price will increase the quantity demanded.
<h3>Why does price decrease when demand increases?</h3>
If demand does not change, there is an inverse relationship between the supply of goods and services and the price. As the supply of goods and services increases with the same demand, prices tend to fall to lower equilibrium prices and higher equilibrium quantities of goods and services.
The relationship between price and demand is negative. H. They are inversely proportional. The inverse relationship means that when the price of a product goes up, the demand for that product goes down, and vice versa. This is due to the law of reducing marginal utility.
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Answer:
have greater marginal utility than existing substitute products
Explanation:
Utility is the satisfaction derived from consuming a good or service. Products or services that meet or exceed customers' expectations are deemed to have a high utility value. Goods that do not adequately address customers' needs are considered to be of low utility value.
Goods and services deemed to be of high utility value are always in high demand. Consumers will be willing to pay more for such commodities. A product with high utility value will outsell its competitors in the market.
The value that would be assigned to this house if you decide to use it as your office would be $ 425300
<h3>How to solve for the value of the house using opportunity cost</h3>
To get the value of the house, you have to get the opportunity cost of the house. This is the foregone alternative or benefits forgone due to another choice.
The formula is opportunity cost = Apprised Value - Selling costs
The apprised value = $439,500.
selling cost = $14,200
$439,500 - $14,200
= $ 425300
Hence the value that should be assigned to it is $ 425300
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