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The price level in the US is more flexible downward than upward?
Wiki User
∙ 11y ago
False.
Wiki User
∙ 11y ago
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What is the difference between CPI and SPI?
CPI mean (consumer price index ) which measure change in the level of consumer goods and services purchase by consumer.SPI mean ( Share Price index)
When output is less than the efficient level?
When output is less than the efficient level, the amount consumers are willing to pay equals the cost of production. the cost of production is greater than the price consumers are willing to pay. the marginal cost of producing the good must be greater than the marginal benefit from the good.
What was the price of a gallon of regular unleaded gas in 1995?
the price of unleaded gas in 1995 was a 1.26
What is the per unit tax on a good?
difference between the total price paid by the buyer and the price received by the seller
What is the price of oil in 2025?
How does your question make sencE??? I mean "what was the gas price" when that year hasn't even happend???????? IT MAKES NO SENCE
3. Assume that a the price level is flexible upward but not downward and b the economy is currently operating at its full-employment output. Other things equal how will each What affect th?
40 percent can also be written as .4 To find 40 percent of 50,000 multiply 50,000 X .4 = 20,000
What will shift the consumption level upward?
Factors such as an increase in disposable income, a decrease in the price of goods and services, changes in consumer preferences towards a particular product, or an increase in consumer confidence can shift the consumption level upward.
How does supply and demand effect on the goods?
Supply and demand intersect at an equilibrium point which determines the optimal quantity of whatever good and its price level. When the demand goes up, the price level increases and the quantity of goods increases as well. When the supply goes up, the price level goes down and the quantity of the good increases. It is easier to visualize this relationship by drawing the graph with a downward sloping demand curve intersecting an upward sloping supply curve. (When drawn, it should resemble the letter "X")
An increase in the price level other things remaining the same may be expected to result in the consumption function?
A downward shift of
Why does a demand curve slope downward left to right?
A demand curve slopes downward left to right because the relationship between price and demand is negative - as price drops demand rises. The opposite is true for a supply curve where as price rises supply rises - the relationship is positive so the supply curve slopes upward from left to right. Nova net answer- because demand decreases as price increases
Why does a demand curve slope downward from left to to right?
A demand curve slopes downward left to right because the relationship between price and demand is negative - as price drops demand rises. The opposite is true for a supply curve where as price rises supply rises - the relationship is positive so the supply curve slopes upward from left to right. Nova net answer- because demand decreases as price increases
A perfectly price- inelastic demand curve is A horizontal b downward sloping c upward sloping d vertical?
A perfectly price-inelastic demand curve is vertical (Parallel to Y-axix) because the percentage change in quantity demanded is nil whatever the percentage change happens in price.
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.
What is the upward movement of price is known as?
inflation
Suppose that the government reduces taxes on imported consumer goods. Use the model of aggregate demand and aggregate supply to explain what would happen to the price level and the output level of the economy in the short run?
The model of aggregate demand and aggregate supply can be used to explain what would happen to the price level and output level of the economy in the short run if the government reduces taxes on imported consumer goods. This can be illustrated with a diagram. In the diagram, the aggregate demand (AD) curve is downward sloping and the aggregate supply (AS) curve is upward sloping. The equilibrium price level is determined by the intersection of the two curves. Initially, the equilibrium price level is P1 and the equilibrium output level is Y1. When the government reduces taxes on imported consumer goods, the aggregate demand curve shifts to the right. This shift is represented by the movement from AD1 to AD2 in the diagram. The new equilibrium price level is P2, which is lower than the original price level. The new equilibrium output level is Y2, which is higher than the original output level. In summary, the reduction in taxes on imported consumer goods leads to a decrease in the price level and an increase in the output level in the short run. This is due to an increase in aggregate demand.
Why is demand curve downward slopping?
It doesn't have to be! It depends how you label x and y axis on your graph. But generally, the higher the price an item is demand will be less and conversly the lower the price, the higher demand will be. Conventionally, we put price on the y axis(vertically) and supply (horizontally) on the x axis. However, this can be reversed to give an upward sloping demand curve.
Why demand curve slopes downward?
Demand curve is slope downward because of inverse relationship between price and quantity.
