Colorado experiences a record snowfall during the winter season. What impact will this have on the market for snowmobiles?
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Ответ:
The demand curve for snowmobiles will increase and the price of snowmobiles will rise.
Explanation:
Demand is defined as the quantity of a good that is requested by a customer at a given price and time.
In the given instance there was heavy snowfall during the winter season that will result in more people wanting to go out on the snow.
When there is a change in demand as a result of a factor apart from price demand shifts.
In this case demand will shift to the right (increase).
Demand will increase at an increased price.
This is illustrated in the attached diagram.
Demand shifts from D1 to D2 and price increases from P1 to P2
Ответ:
The company should accept the idea reason been that the profit will increase by $24,000
Explanation:
Calculation to determine What should the company do
First step
Increased CM = [10,750 x (27+(40-45))]- (10,000 x 27)
Increased CM = [10,750 x(27+5)]- (10,000 x 27)
Increased CM = (10,750 x 32) - (10,000 x 27)
Increased CM = $344,000-$270,000
Increased CM = $74,000
Now let calculate the profit
Profit =$74,000-$50,000
Profit=$24,000 Increase
Therefore based on the above calculation The company should accept the idea reason been that the profit will increase by the amount of $24,000