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What else can I help you with?
A decrease in net taxes will?
Raise aggregate expenditure by raising disposable income, thereby increasing consumption.
How can national debt be elimined?
By balancing the budget. This can be done by increasing government income (raising taxes) and decreasing government expenditure.
What are factor determine demand curve?
Demand influences supply. When there is high demand for items, supply is lower, thus increasing the cost. When there is low demand, supply is high, thus decreasing costs.
Importance of infrastructure?
Infrastructures are important because it has a direct impact to the society. These help in increasing the productivity of labors and raising the profitability, employment and income of an industry.
Is the income elasticity of demand different for normal and inferior goods?
Yes, the income elasticity of demand is different for normal and inferior goods. Normal goods have a positive income elasticity of demand, meaning that as income increases, the demand for these goods also increases. In contrast, inferior goods have a negative income elasticity of demand, indicating that as income rises, the demand for these goods decreases.
What is the relationship between income elasticity of demand and inferior goods?
The income elasticity of demand measures how sensitive the quantity demanded of a good is to changes in income. For inferior goods, the income elasticity of demand is negative, meaning that as income increases, the demand for inferior goods decreases.
What are the determinants of income elasticity of demand?
write a note on determinates of income elasticity of demand
Distinguish between price and income elasticity of demand?
distinguish between price elasticity of demand and income elasticity of demand
How the higher national income will contribute he growth of the economy?
A higher national income reflects an increase in demand from the country itself and exports to outside countries. This contributes to the growth of the economy by increasing employment and wages to meet these demands.
What are two related effects that combine to make a consumer able and willing to buy more of a specific product at a lower price than at a higher price?
substitution effect- the effect on the demand of a good only due to the price change, it is relatively cheaper than the other good. income effect- the increase in demand due to the fact the good is cheaper, thereby increasing your ability to purchase more goods, giving you more real income. this is for lowering of prices, the opposite is true for raising the price of a good.
When will the income elasticity of demand equal zero?
When an increase in income is not associated with a change in the demand of a good.
Factors affecting income elasticity of demand?
The income factor affecting income elasticity of demand is weather or not goods are necessities of luxury.
