1.0 points) You don’t have any income. You won’t be able to pay your bills. c. Would this risk be likely to create unexpected expenses? Why or why not? (1-3 sentences.
d. Low inflation rate and high economic growth rate. 2. Economics is the study of: a. how to allocate limited resources to satisfy limited wants. b. how to allocate limited resources to solve unlimited wants. c. methods to eliminate scarcity.
| For example dominos and pizza hut are substitutes. Lets say the prices of dominos rises and the demand for pizza hut should also change. Price of Dominos Quantity of Pizza Hut From the above diagram we can see that as the price of Dominos increases the demand for Pizza Hut increases from D1 to D2 as seen in the diagram. So this is a rightward shift vice- versa occurs when demand for Pizza Hut will fall and demand for Pizza Hut. Cross elasticity of demand is negative for two goods when the demand for one good changes as price of the other good changes but in opposite way as the above.
Therefore, if MPC and consumer confidence is at a low, consumers will spend less and save more therefore resulting in a decrease in total consumption levels. This consequently will result in an increase in taxation, as there is a decrease in the circular flow of income, meaning governments have to increase taxes in compensation for the lack of spending. Due to this taxation increase the level of real disposable income, or RDI, amongst consumers will decrease and therefore decreasing consumer
1. Which of the following is not a basic question that each economy must answer? A) Which resources are scarce? B) For whom shall the goods be produced? C) How shall goods be produced?
The Price Elasticity of Demand is also commonly known as just price elasticity it measures the rate of response of quantity demanded due to a price change. The formula for calculating price elasticity of demand is: Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price If a small change in price is accompanied by a large change in quantity demanded, the product is said to be elastic (or
B. demand may be either elastic or inelastic. C. an increase in price will increase total revenue. D. demand is elastic.Answer | | | | | Selected Answer: | 3. c | Correct Answer: | 3. c | | | | | * Question 3 10 out of 10 points | | | 3. The main determinant of elasticity of supply is the: . A. number of close substitutes for the product available to consumers.
An increasing marginal cost curve will intersect a U-shaped average cost curve at its minimum, after which point the average cost curve begins to slope upward. This is indicative of diseconomies of scale. For further increases in production beyond this minimum, marginal cost is above average costs, so average costs are increasing as quantity increases. As for the short run average cost curve, initially it is worth producing more, as you are making use of the fixed resource(e.g., reezit machine). however, as the law of diminishing return sets in, it is more costly to produce the extra unit of output.In the short term, there is at least one fixed unit of input that cannot be changed, and because of that, the law of diminishing return applies, saying that as you add successive units of labour into a fixed input, the marginal return diminishes over time.
It could therefore be said that an increase in the incomes of consumers could cause the bus operators revenue to decrease due to a fall in demand. This would indicate that the bus driver should close the service. Price elasticity of supply measures the proportionate response to changes in quantity supplied to a proportionate price change. A price elasticity of supply value of +1.15 means that the bus service has a more than proportionate response in supply to a change in price. The positive sign basically shows that higher prices will
Why is the supply curve for labor usually upward sloping? The supply curve for labor is usually upward sloping because labor is attracted when wage is high. Labor is discouraged to get the work when the wage is low. There will always be positive relationship between wage and labor. 2.In the graph below, assume that the market demand curve for labor is initially D1.