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How the increase in expansion affect the demand?
Increase in expansion affect the demand because more supply/expansion with constant demand will lead to excess in expansion which affect the demand.
In a perfectly competitive market an increase in demand will in the long run generally cause?
An increase in demand in a perfectly competitive market will lead to an increase in revenue for the business. The more they sell the more they will make.
What of these is most likely to lead to an increase price of a company's stock?
Answer : Its profits increase. Explanation : When a company is more profitable, it's stock is in higher demand, and higher demand means a higher price.
List and explain two different factors that can change demand that is not related to price?
An increase in income would change a person purchasing power. This would lead to an increase in demand for normal goods. Normal goods are goods that you would buy more of the greater your income is. An increase in population would also increase demand as there are now more people in the market to buy the goods.
How does a decrease in the price level impact real wealth and aggregate demand?
A decrease in the price level can increase real wealth because people's money can buy more goods and services. This can lead to an increase in aggregate demand as consumers are more willing to spend money, which can stimulate economic growth.
Why does selling stock lower the price?
Selling stock can lower the price because when there is more supply of a stock available for sale than there is demand from buyers, the price tends to decrease. This is due to the basic economic principle of supply and demand, where an increase in supply without a corresponding increase in demand can lead to a decrease in price.
Find at least two specific current examples of non-price determinants that shift demand in the market?
There are a number of non-price determinants that can shift demand in a market. Some of the most common include changes in income, changes in prices of complementary or substitute goods, changes in consumer tastes or preferences, and changes in the number of consumers in the market. For example, an increase in income will lead to an increase in demand for most goods and services. This is because as consumers have more money to spend, they are able to purchase more of the things they want and need. A change in the price of a complementary good, such as a decrease in the price of gasoline, will also lead to an increase in demand for automobiles. This is because consumers will have more money to spend on automobiles if the price of gasoline is lower. Similarly, a change in the price of a substitute good, such as an increase in the price of coffee, will lead to a decrease in demand for tea. This is because consumers will substitute coffee for tea if coffee becomes relatively more expensive. Finally, changes in consumer tastes or preferences can also lead to changes in demand. For example, if more consumers become interested in healthy eating, there will be an increase in demand for fruits and vegetables. Conversely, if more consumers become interested in fast food, there will be an increase in demand for hamburgers and fries.
A graph example of supply increase without changes in demand?
If a seller increase supply without changes in demand, his business will not last. He will have more supply than demand.
What the cause of demand pull inflation?
Consumers want more and more goods and services. Stronger consumer demand for goods with a limited or fixed supply. A price level increase due to an increase in aggregate demand.
How are prices determined in a well functioning economy?
By simple supply and demand theory. The more demand, or the less supply, will lead to higher prices. The less demand, or more supply, will lead to lower prices.
What does it mean when a demand curve shifts to the right and how does it impact the market?
When a demand curve shifts to the right, it means that consumers are willing to buy more of a product at every price point. This indicates an increase in demand for the product. As a result, the market equilibrium price and quantity will both increase. This shift can lead to higher prices and increased sales in the market.
What is a good that consumers will demand more of when their income increase?
food
