Ask Question
BusinessBusiness
23 May, 07:35

Suppose both the demand for and supply of salsa increase (although not necessarily by the same amount). What can we conclude about changes in the price and quantity of salsa?

+5
Answers (1)
  1. 23 May, 07:47
    0
    If both demand and supply increase by the same amount, the output level will increase while price will remain same.

    If increase in demand is greater than increase in price then price and output both will increase.

    If increase in supply is greater than increase in demand, price will decline while output will increase.

    Explanation:

    The changes in the price and quantity of salsa depending on the degree of change in supply and demand. In case both the variables increase by the same proportion, the price will remain the same while quantity will increase.

    In case the increase in demand is more than increase in supply it would cause the price to increase because of excess demand. At the same time, the quantity will increase as well.

    In case the increase in supply is more than increase in demand, the price will fall due to excess supply. The output will increase as well.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose both the demand for and supply of salsa increase (although not necessarily by the same amount). What can we conclude about changes ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
An investment project is expected to generate earnings before taxes (EBT) of $60,000 per year. Annual depreciation from the project is $30,000 and the firm's tax rate is 40 percent. Determine the project's annual net cash flows.
Answers (1)
A woman is planning to retire in 10 years. She wishes to deposit a regular amount every six months until she retires, so that beginning one year following retirement she will receive annual payments of $20,000 for the next 20 years.
Answers (1)
On January 1, Year 1, Alla Co. sold a property to Mish Co. for $400,000 and simultaneously leased it back for 3 years. The carrying amount of the property was $280,000, and its fair value was $310,000.
Answers (1)
To find out as much as you can about the market for your potential business, be sure to talk to A. the local bookstore owner. B. potential employees. C. potential customers. D. anyone who may compete with you locally. 18
Answers (2)
You have decided to spend $5,100 on a vacation 3 years from now, $9,500 on a vacation 5 years from now, and $6,500 on a vacation 7 years from now. You want to deposit sufficient funds today to cover these future expenditures.
Answers (1)
New Questions in Business
Identify an advertisement or commercial that targets only one of the generational groups. Describe the promotion in detail and identify the intended group.
Answers (1)
From the Farm Fruits, a company that produces and distributes organic fruits for grocery stores, wants to market its fruits in such a way that children will beg their parents to buy them.
Answers (1)
For a given constant required rate of return, the greatest portion of a preferred stockholder's return comes from increases in the price of preferred stock. a. True b. False
Answers (1)
A good investment should do one or both of which two things?
Answers (1)
Which of the following is a reason franchising has become popular in recent years? A) Franchise owners are free to set their own rules and operating standards, but they benefit from national ad programs ...
Answers (1)
Home » Business » Suppose both the demand for and supply of salsa increase (although not necessarily by the same amount). What can we conclude about changes in the price and quantity of salsa?
Sign Up Forgot Password?