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increase price bit higher than earlier and produce more so that demand equals the supply.
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∙ 11y ago
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How does a firm generally respond to a higher demand for its goods?
it rations goods
How does a firm respond to a higher demand for its goods?
it raices prices
What is secondary demand?
It is the demand for specific goods/services of a firm. Due to differentiation of goods in the industry.
What is derivation of law of demand?
Law of demand is the higher the price the lower of goods demand for
What is a firm's goal when determining how many goods to produce?
to produce enough goods to meet demand while making a profit
What is a positive demand curve?
demand curve tends to be downward sloping (negative) for normal goods. for goods that are perceived to be of superior value to customer (like it serves as a status quo), the higher the price, the higher the quantity demanded. hence, giving a positive demand curve. there are called the veblen goods. Giffen goods also has a positive demand curve.
How population affects demand?
When demand for goods go up if it is expected to rise. the higher the population the higher the demand for the products or services
How is a monopoly and a perfectly competitive firm similar?
A perfect competitive market and pure monopoly market both have to follow the "law of demand".
How did the baby boom generation affect the demand for certain goods?
The baby boom generation affected demand for certain goods by leading to a higher demand for baby clothes, baby food, and books on baby care. - You're WelCUM
One major reason for the law of demand is that?
people substitute relatively lower-priced goods for relatively higher-priced goods.
What happens when income tax are increased?
firm and households have less money to spend . this leads to a fall in demand for goods and services. Clover
When a firm makes a profit by producing enough goods to meet demand without having leftover supply at what point is it?
When a firm makes a profit by producing enough goods to meet demand without having leftover supply the point of profit is where marginal revenue equals marginal cost.
