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If a price increase has little or no effect the demand for the product is?
When a price increase has little or no effect on the demand for a product, it is inelastic.
What is the output effect and the price effect for an oligopoly?
Since P>MC for an oligopoly, the output effect is that selling one more unit at the sales price will increase profit.The price effect is that an increase in production will increase the total amount sold, which will decrease the price and decrease the profit on all other units sold.If the output effect is greater than the price effect, the owner will increase production.If the price effect is greater than the output effect, the owner will not increase production (and may even decrease production).Oligopolists will continue to increase or decrease production until these marginal effects balance.
Future tense Avocados increase in price after a drought.?
Future Simple:The price of avocados will increase after the drought.Future Continuous:The price of avocados will be increasing after the drought.Future Perfect:The price of avocados will have increased after the drought.Future Perfect Continuous:The price of avocados will have been increasing after the drought.
What is the likely effect of this high demand on gasoline prices?
The Price of the gasoline with increase : D
An increase in supply will have what effect on equilibrium price and quantity?
Increase in supply in the face of steady demand will result in lower price.
Will the gold price increase or decrease in futre in Pakistan?
I do not think that the Gold Price will decrease in future
What does the effect of rate of interest on bonds?
it will increase the price of bonds
There is Increase in price of salt explain its effect on its demand?
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What terms is defined as increase or decrease in purchasing power brought on by changing in price?
income effect
Is it true that substitution effect is always negative?
No, the substitution effect is not always negative. It refers to the change in quantity demanded of a good when its price changes, leading consumers to substitute it with other goods. While a price increase typically results in a decrease in quantity demanded (a negative substitution effect), a price decrease can lead to an increase in quantity demanded, which can be viewed as a positive effect. Thus, the direction of the substitution effect depends on the nature of the price change.
Which Is Likely To Have The Larger Effect On The CPI A 2 Percent Increase In The Price Of Food Or A 3 Percent Increase In The Price Of Diamond Rings?
A 2 percent increase in the price of food is likely to have a larger effect on the Consumer Price Index (CPI) compared to a 3 percent increase in the price of diamond rings. This is because food is a staple item that is consumed by the majority of the population, making its price change more impactful on overall living costs. In contrast, diamond rings are luxury items purchased by a smaller segment of the population, so their price fluctuations have a limited effect on the CPI.
What is the price effect according to the law of supply?
The law of supply says; The supply will be increase due to increase in price and vice versa. The reason is that the seller will maximize his profit.
