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Answer:
Low cost will result in more supply and low customer demands as demands decrease this will result in increase of supply,so low unit cost will is better value only if you purchased all the items to get lower unit rate.
Unit rates are the rates of one quantity.
Paul's claim about unit rates is correct.
From the question, we understand that Paul's claim that lower unit rates are better.
Take for instance, the following unit rates of a computer device in two stores are:
[tex]Rate\ 1 = \$50/computer[/tex]
[tex]Rate\ 2 = \$55/computer[/tex]
The sales of two computers in both stores would cost
[tex]Store\ 1 = \$100[/tex]
[tex]Store\ 2 = \$110[/tex]
By comparison, the cost of 2 computer devices in store 1 costs lesser because store 1 uses a lesser unit rates.
Hence, Paul's claim about unit rates is correct.
Read more about unit rates at:
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