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When the price of a capital good increase what happens to the prices of related consumer goods and services?
Wiki User
∙ 9y ago
Prices increase due to the increase in production cost.
Wiki User
∙ 9y ago
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When the price of a capital good increase what happens to the prices of related consumer goods and services Why?
Prices increase due to the increase in production costs.
When the price of a capital good increases what happens to the prices of related consumer goods and services Why?
Prices increase due to the increase in production costs.
What happens to the PPF when there is an increase in resources?
An increase in resources, such as a growth in the labor supply or in the capital stock, shifts the frontier outward.
What happens to consumer surplus when demand increases?
Consumer surplus is the hypothetical monetary gain of consumers because they are able to buy a product for a price lower than they are originally willing to pay. When demand increases, supply (which is inversely proportional to demand) decreases, and as a result, prices increase. When prices increase, consumer surplus decreases.
What happens to equilibrium price and quantity when there is an increase in the consumers income?
When one part of the equation is increased (consumer income) than the equation no longer had equequilibrium.
When the price of a capital good increase what happens to the prices of related consumer goods and services Why?
Prices increase due to the increase in production costs.
When the price of a capital good increases what happens to the prices of related consumer goods and services Why?
Prices increase due to the increase in production costs.
When the price of a capital good increases what happens to the price of related consumer goods and services?
Prices increase due to the increase in production costs.
When the price of capital good increases what happens to the prices of the related consumer goods and services and why?
Prices increase due to the increase in production costs.
When a price of a capital good increases what happens to the prices of related consumer goods and services Why?
Prices increase due to the increase in production costs.
When the price of a capital good increases what happens to the prices of related consumers goods and services?
Prices increase due to the increase in production costs.
What happens to consumer and businesses spending when the interest rates go up?
They both increase
What happens to the PPF when there is an increase in resources?
An increase in resources, such as a growth in the labor supply or in the capital stock, shifts the frontier outward.
What happens when there is an increase in prices for goods and services combined with a reduction in the value of money?
When there is an increase in prices for good and services combined with a reduction in the value of money it is known as inflation.
What happens when there is an increase in price for good and services combined with a reduction in the value money?
When there is an increase in prices for good and services combined with a reduction in the value of money it is known as inflation.
What happens to consumer surplus when demand increases?
Consumer surplus is the hypothetical monetary gain of consumers because they are able to buy a product for a price lower than they are originally willing to pay. When demand increases, supply (which is inversely proportional to demand) decreases, and as a result, prices increase. When prices increase, consumer surplus decreases.
What happens when there is an increase in prices for good and service combined with a reduction in the value of money?
When there is an increase in prices for good and services combined with a reduction in the value of money it is known as inflation.
