Yes. Demand is defined as the quantity or a good or a service need by people for a price. So when a supplier identifies the demand for a good, he would supply for a mutually agreed price between supplier and consumer.
Yes. When a firm supplies good, it provides employment opportunities which increase the income. The increased income would make people to consume goods and thereby creating its own demand.
Is there a supply for every demand? Does a supply creates its own demand?
(3 Marks) Say's Law states that supply creates its own demand. What does this mean?
Say's Law: Supply creates its own demand; implies there cannot be insufficient aggregate demand or demand caused recessions True False
supply creates its own demand and therefore events like the great depression were largely ruled out by classical economists. keynes, however pointed out that blank did not necessarily always hold because some agents in the economy might decide to blank portions of their incomes. if enough individuals did this significant recessions might emerge and persist
In the Keynesian zone of the aggregate supply curve, how is Keynes’ law, where demand creates its own supply, illustrated? Prices change relatively little with an increasing aggregate demand, but that changing demand does effectively increase aggregate outputs because of the excess capacity in the economy. Because the economy is closer to full output, aggregate demand either increasing or decreasing has a large effect on prices and little effect on aggregate supply. Prices remain relatively static and outputs remain unchanged...
Equilibrium price must decrease when demand a. increases and supply does not change, when demand does not change and supply decreases, and when demand decreases and supply increases simultaneously. b. decreases and supply does not change, when demand does not change and supply increases, and when demand increases and supply decreases simultaneously. c. increases and supply does not change, when demand does not change and supply decreases, and when demand increases and supply decreases simultaneously. d. decreases and supply does...
How does the supply or demand for loanable funds shift when a country increases its budget deficit? O a. The demand for loanable funds shifts right. 10 b. The supply of loanable funds shifts right. 10 c. The demand for loanable funds shifts left. O d. The supply of loanable funds shifts left.
How does the law of supply and demand relate to the urgent care medical market in the United States? Explain the increasing demand for urgent care services and its effect on price and supply of services.
examine the Aggregate Supply and Aggregate demand model. What are its merits? How does it seek to account for the entire economy? How is this helpful in the short term? In the long term? Are there any potential shortcomings to this model?
examine the Aggregate Supply and Aggregate demand model. What are its merits? How does it seek to account for the entire economy? How is this helpful in the short term? In the long term? Are there any potential shortcomings to this model
Demand and Supply
What does the following figure represent?
A relatively elastic supply curve
A relatively inelastic supply curve
A relatively elastic demand curve
A relatively inelastic demand curve
Demand and Supply What does the following figure represent? ЛУ Price Elasticity < 1 Q Quantity A relatively elastic supply curve O A relatively inelastic supply curve о A relatively elastic demand curve O A relatively inelastic demand curve