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If the price of Good A increases people will demand more of Good B?
Wiki User
∙ 12y ago
this is if and only if these two goods are substitute
Wiki User
∙ 12y ago
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What is a price cut when the demand for a normal good is price inelastic?
Demand is inelastic when changes the in price of a commodity do not effect (or have very little effect) the quantity of that product demanded. For most commodities, demand decreases with price increases and demand increases with price decreases.
The law of demand indicates that as the price of a good increases?
Buyers
Price of related goods?
Demand for good or service increases if the price of related goods increases, and vice versa.
What will happen to the equilibrium price and quantity of a normal good if the demand for the good increases and supply constant?
the equilibrium price rises and the quantity increases
Why demand curve downward slopping?
The demand curve is plotted with quantity on the horizontal axis and price on the vertical. As the price of a good increases, people will want/be able to purchase less of it. If the price decreases, the quantity people will buy more.
Definition for ''law of demand''?
In economics, the law of demand states:- As the price of a good or service increases, the demand for that good or service will decrease.- As the price of a good or service decreases, the demand for that good or service will increases.
What happens when demand for a good increase but it's supply decrease?
The price for the good increases
What is a price cut when the demand for a normal good is price inelastic?
Demand is inelastic when changes the in price of a commodity do not effect (or have very little effect) the quantity of that product demanded. For most commodities, demand decreases with price increases and demand increases with price decreases.
The law of demand indicates that as the price of a good increases?
Buyers
Price of related goods?
Demand for good or service increases if the price of related goods increases, and vice versa.
What will happen to the equilibrium price and quantity of a normal good if the demand for the good increases and supply constant?
the equilibrium price rises and the quantity increases
Why demand curve downward slopping?
The demand curve is plotted with quantity on the horizontal axis and price on the vertical. As the price of a good increases, people will want/be able to purchase less of it. If the price decreases, the quantity people will buy more.
Demand curve of a giffen good?
A Giffen good is a good whose consumption increases as its price increases. (For a normal good, as the price increases, consumption decreases.) Thus, the demand curve will be upward instead of downward sloping.A giffen good has an upward sloping demand curve because it is exceptionally inferior. It has a strong negative income elasticity of demand such that when a price changes the income effect outweighs the substitution effect and this leads to perverse demand curve.
How price of related goods affect demand?
Price of related goods fall into two categories: substitutes and complements. Complements are when a price decrease in one good increases the demand of another good. Substitutes are when a price decrease in one good decreases the demand for another good.
What usually happens to the price of a good when the demand for it is higher than the supply available?
What ever the demand is it's scarce
The principles that states that the consumer will buy less as the price increases?
supply and demand/ it states that as the price of a good or service goes down the more demand will increase and as the price goes up demand decreases
How does a market use price changes to ration a good?
In general, demand decreases as price increases, resulting in a form of rationing. (However, this effect varies widely among goods and services; for example, demand for gasoline decreases only slightly with increases in price.)
