Question

#3 in an economy that grows rapidly, what factor has the strongest influence on supply? why?

#5 under what conditions does the law (hypothesis) of demand not hold true?

QUESTIONS o function competitively? Is vhat conditions must exist in order for a market to function competitively y easy to create these conditions? Why? what is the most 2.) In an economy that grows rapidly for a long period of time, what is the portant factor affecting demand? Why is this so? 3.) in an economy that grows rapidly, what factor has the strongest influene supply? Why? (4. Evaluate the following statement: The only thing that can't cause a change in the demand for gasoline is a change in the price of gasoline. 5. Under what conditions does the law (hypothesis) of demand not hold true? 6. Consider Figure 3-11 and do the following things: a. Label both axes properly. b. Label the demand curve and the supply curve. c. Label the equilibrium price. d. Label the equilibrium quantity e. What does one call the distance CD? Label it. f. What does one call the distance AB? Label it. Why is the equilibrium price the price that tends to be created? Figure 3-11 Equilibrium Pricing

Answer 1

3) In an economy that grows rapidly the main factor that affects supply is always the resources that is required for production. Because in such an economy the demand for labour is very High which obviously influence the supply of resources. Most the fast growing economies always have good development and expansion in production as it is the game changer for a country development in that period.

5) As per law of demand if there is any Increase in price of goods there will be decrease in the price of goods and vice versa. There are few goods under which law of demand does not hold. Goods like which are necessary for our baisc needs like medicine law of demand does not hold.

Future expectations onprice of a goods also law of demand does not hold as we can't expect the future of any outcome. Even on Giffen goods law of demand does not hold.