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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 likely effect of this high demand on gasoline prices?
The Price of the gasoline with increase : D
When demand increases and supply is perfectly elastic what will be the effect?
there will be no change in price because as demand will increase supply will also increase.
Explain the effect on the equilibrium price and quantity if increase in the price in product?
If the price increases it means there is not a lot of product avaible. This is seen when a company can not keep up with demand the tend to raise prices so that demand goes down. This is also seen in with the opposite effects, if a company has too much of a product then they lower prices to increase demand
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.
What is an increase in demand likely to lead to?
If there is an increase in demand, there will be increase in the price of the product if the supply remains the same. But if the manufacturer or supplier is able to supply increased quantity of product there will be no major effect.
What is the difference between increase in demand and an increase in quantity demand?
Increase in demand::It imply rightwaed shift of demand curve.Therefore change in factors other than price.1. increase in taste increase in demand curve2. increase in popoulation increase in demand curve3. increase in income increase demand if normal good4. fall in income increase demand if an inferior good5. increase in price of substitute (pepsi) increase demand for good(coke)6. fall in price of complement (beer) increase demand for good7. if we expect the price of the product to increase in the future , our demand today will increase.Increse in quantity demanded::Movement up the demand curve.Therefore change in price-------- increase in price cause a decrese in quantity demanded,decrese in price cause an increase in quantity demanded .
Assuming increase a price of commodity X where x is an inferior good decompose the total effect of price change into substitution n income effect also derive the demand curve?
decompose total effect of price increase for an inferior good and giffen into substitution and income effect, in each case derive both the ordinary and compensated demand curve
Explain movements along the aggregate demand curve and shifts of the aggregate demand curve?
Movements along the aggregate demand curve are caused by changes in price level - real wealth effect, interest rate effect and open economy effect. If some non-price level determinant causes total spending to increase/decrease then the curve will shift to the right/left - consumption, investment, government expenditure, net exports.
Explain the effects of a rise in the price on market when the price elasticity of demand for product is inelastic?
Revenue of the producer will increase since there will be no change in quantity demanded.
An increase in demand accompanied by an increase in supply will increase the equilibrium quantity but the effect on equilibrium price will be indeterminate True or False?
Posoftifly Yes im afraid
How does the equilibrium price change when both supply and demand shift to the right?
When both supply and demand shift to the right, the equilibrium price will increase if the increase in demand is greater than the increase in supply. Conversely, the equilibrium price will decrease if the increase in supply is greater than the increase in demand.
