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Q: What is the relationship between opportunity cost and shadow price?
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What is the difference between constant opportunity cost and increasing opportunity cost?

Real cost is the price which is real not a fake price


What is Shadow Budget?

Shadow budget refers to the opportunity cost of an activity or project to a society. It is usually computed when the actual price is not known. Even though the price is known, it does not reflect the real sacrifice made for that matter.


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The relationship between price asked and quatity supplied.


Is their inverse relationship between quantity and price?

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The supply curve shows the relationship between?

Supply curve shows relationship between price of the particular commodity and the quantity supplied of that commodity at different price level.


The relationship between the value of money and the price level?

There is an inverse relationship between value of money and the price level. So if the value of money is low, then the price level is high or if the value of money is high, then the price level is low.


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What is the relationship between the price of an item and the quantity demanded?

It is a direct relationship. As demand for an item rises, all else equal, price for an item will rise.


What is an example of shadow price?

Shadow price: black market price for a good. Example: price of cigarettes from Native reserves in southern Ontario.


What are the reasons for negative relationship between price and quantity demanded?

Price and demand have an inverse relationship. Therefore, if the price goes up, the demand goes down; the price goes down, the demand goes up.