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Describe and explain how a rational consumer with a fiven income and taste can allocate his income among the available goods and services
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∙ 10y ago
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What will happen when consumer incomes increase?
The prices of the goods will likely increase as well due to it.
What is an economic definition of normal good?
Normal goods are any goods for which demand increases when incomes go up, and for which demand decreases when incomes go down. Normal goods tend to be luxury goods. If incomes go up, more people will be yachts. If incomes go down, fewer people will be yachts.
What is the effects of savings and investment in circular flow of the economic activity?
The households like to allocate a part of their incomes for future uses. As a result the firms has to dispose all their goods and services that remain unsold. creating a disequilibrium to the flow of the economy.
The term inferior goods refers to what kind of goods?
goods that consumers demand less of when their incomes increases
The term normal goods refers to what kind of goods?
Goods that consumers demand more of when their incomes increase
What will happen when consumer incomes increase?
The prices of the goods will likely increase as well due to it.
Why have rising incomes in china led to a growing demand for consumer goods?
because china is developing very quickly
How consumers allocate their incomes across goods and explain how these allocation decisions determine the demands for various goods and services to maximize their well-being?
i) It must be located on the budget line. To see why, note that any market to the left of and below the budget line leaves some income unallocated income which,if spent,could increase jthe consumer's satisfaction.Of course,consumers can save some of their incomes for future consumption.However,we will keep things simple by assuming that all income is spent now.Any market basket to the right of and above nthe budget line cannot be purchased with available income. In this case,when demanad things increase,consumer cannot buy the thing much because supplier cannot produce all the demand from consumer because supplier assume the consumer wiil have maximize utilty. Means of utility is numerical score reprensenting the satisfaction that a consumer gets from a given market basket. ii) It must give the consumer the most preferred combination of goods and services. These two condition reduce the problem of maximizing consumer satisfaction to one of picking an appropriate point on the budget line. Consumer must buy the things with suitable incomes
What is an economic definition of normal good?
Normal goods are any goods for which demand increases when incomes go up, and for which demand decreases when incomes go down. Normal goods tend to be luxury goods. If incomes go up, more people will be yachts. If incomes go down, fewer people will be yachts.
What is the effects of savings and investment in circular flow of the economic activity?
The households like to allocate a part of their incomes for future uses. As a result the firms has to dispose all their goods and services that remain unsold. creating a disequilibrium to the flow of the economy.
The term inferior goods refers to what kind of goods?
goods that consumers demand less of when their incomes increases
The term normal goods refers to what kind of goods?
Goods that consumers demand more of when their incomes increase
Which market or markets are consumer goods and services bought into?
Goods or services bought by a consumer are bought in the consumer market. The consumer market includes fast moving consumer goods, consumer durables, soft goods and services.
When was The Consumer Goods created?
The Consumer Goods was created in 2006.
What are consumer goods and what are industrial goods?
consumer goods are commodities which satisfy wants directly
What are produce goods andconsumrr goods?
Consumer goods are market ready goods, producer goods are the input materials needed to manufacture consumer goods.
What are the differences between consumer goods and industrial goods?
Consumer goods are for sale as is to the public. Industrial goods require finishing.
