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Why is buying goods on credit not always a good idea?
The demand for goods and services goes down
Will there always be a demand for inferior goods?
Yes, there will always be some demand for inferior goods; some people will always have lower incomes that force them to consume the inferior goods. However, the demand for these goods can fluctuate based on GDP and the general state of the economy.
What is price of related goods in demand?
Price of related goods in demand means prices of substitute goods and complementary goods.
How do complements affect demand?
Because of complimentary goods demand increase.
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.
How does price help to connect the availability of goods to the demand for goods?
The price of a given commodity will determine both the demand and the availability of goods. If the price is reduced the demand of the goods will increase and the availability of the goods will reduce.
When markets make economics decisions convert resources into goods and services?
Demand will always force markets to make economic decisions to convert resources into goods and services. Without demand. There is any reason to convert the resources.
Are elastic or inelastic goods are still in demand even if even if prices rise?
Inelastic goods, such as gas or energy based products will always be in demand. This is owing to the fact that everyone utilizes the generally inexpensive goods. Elastic goods, on the other hand, are considered a luxury item/s, such as a Corvette or designer clothing.
What do you call in economic terms buying and selling of goods?
Demand and Supply. Demand= buying goods and services. Supply=selling goods and services.
How does a command economy respond to consumer demand?
Command economy, due to the imperfect market it always creats, it shall always supply economic goods(scarcity) in the market to alow high demand, hence monopoly of the market.
What is secondary demand?
It is the demand for specific goods/services of a firm. Due to differentiation of goods in the industry.
How Is demand good for related goods?
Demand for one good can positively impact the demand for related goods, particularly in the case of complementary goods. When the demand for a primary product increases, the demand for its complementary goods typically rises as well; for example, if more people buy smartphones, the demand for phone cases and chargers also increases. Conversely, for substitute goods, if the demand for one good rises, the demand for its substitute may decrease as consumers switch to the preferred option. Thus, the interrelation of demand among related goods can influence market dynamics significantly.
