Which of the following is important to understand because it is necessary to know whether changes in consumers' incomes or changes in the cost of a product will end in the desired outcome?
A. |
Elasticity |
|
B. |
Demand |
|
C. |
Cost |
|
D. |
Supply |
Ans. B. Demand
Whether changes the sale will be decreased and stoked product sales will be decreased so customers demand will be decreased . Because the stock product fashion is down.
Which of the following is important to understand because it is necessary to know whether changes...
1. Which of the following statements is false Scarcity is the tension between unlimited wants and limited resources Demand is the quantity of a product or service desired by consumers Supply is how much of a product or service the market can offer Total utility is the sum of all satisfaction or benefit that an individual gains from some amount Elasticity is the degree to which supply or demand reacts to changes in quantity available. (is this correct) 2. The...
8. When deciding what to tax, which of the following is true of the government if it wishes to know who will be paying the tax? a. It must know the demand of the good or service. b. It must understand the supply of the good. c. It must know the price elasticities of demand and supply. d. It must know the income elasticity of demand. 9. The best example of two complementary goods is _____ and _______. a. a...
The price elasticity of demand will always be a negative number because: demand is determined by consumers. producers and consumers like different prices. price and quantity demanded move in opposite directions. price and quantity demanded move in the same direction The income elasticity of demand for a good describes how much: the quantity supplied changes in response to a change in producers' incomes the quantity supplied changes in response to a change in consumers' incomes. the quantity demanded changes in...
Which of the following concepts can be used to understand the effects of price changes on quantity demanded and quantity supplied, as well as the effect of raising taxes on revenue from the tax? Group of answer choices supply and demand model scarcity. elasticity
1. In partial equilibrium analysis in a product market, a single market is being examined in isolation to understand the relationship between: A. How a product's price coordinates economic transactions between at least one consumer and at least one firm. B. How a product's price coordinates profit between at least one consumer and at least one firm. C. How a product's price coordinates cost between at least one consumer and at least one firm. D. How a product's price coordinates...
Q11 - Draw hypothetical supply and demand curves for tea. For each of the following examples either supply or demand will be affected. In each example say whether supply or demand is affected, and how they are affected, meaning are they increased or decreased. Once you identify which curve changes and how it changes, explain or describe how the equilibrium price and equilibrium quantity will be affected. Example: Consumers have more income and tea is a normal good. (This is...
choose the correct answer21\ Identify which one of the following changes in supply curve occurs when there is an increase in price of product:A\ Increase in supplyB\ Extension in supplyC\ Decrease in supplyD\ Contraction in supply 23\If the price of a product increases by 10% and demand decreases by 25%. It is the situation of: A\ Relatively inelastic demandB\ Unitary elastic demandC\ Perfectly elastic demandD\ Relatively elastic demand24\ In the analysis of its elasticity, if the demand for product “A”...
We know that real-world markets are neither perfectly competitive nor purely monopolistic. Changes in market conditions occur as a result of innovations and technological changes, regulatory changes, and resource availability on the production (supply) side, on the one hand, and changes in consumers' preferences and incomes on the demand side, on the other hand. As a result, over time, some industries become more competitive and some become less competitive or more monopolistic. In your view, in recent years which industries...
In a market economy, supply and demand are important because they a. are direct policy tools used by government agencies to regulate the economy. b. illustrate when an market is in equilibrium, but they are not helpful when a market is out of equilibrium. c. can be used to predict the impact on the economy of various events and policies. d. All of the above are correct. Part B. Price controls a. always produce a fair outcome. b. always produce...
1.Price elasticity of demand indicates the consumer response to changes in: A. Quantity B. Demand C. Price D. All of the above 2.If the price elasticity of demand for a product is −2, this means that, ceteris paribus, quantity demanded will increase by A. 2 units for each $1 decrease in price. B. 1 unit for each $2 decrease in price. C. 2 percent for each 1 percent decrease in price. D. 1 percent for each 2 percent decrease in...