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The interaction of the producer and the consumer establishes a price?
Wiki User
∙ 14y ago
True.
Wiki User
∙ 14y ago
Anonymous
True
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What is heterogeneous goods?
Heterogeneous goods are factors contributing to a consumer good other than the price. Is usually asked on the consumer's opinion or feeling about the product itself.
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Advancement in biotechnology has enabled us to get better consumer products as reasonable price. Some incurable human diseases like diabetes, sickle cell anemia, cystic fibrosis etc are now best treated using biotechnology. Biotechnology is high- tech low- risk technology hence its impact on the society is tremendous.
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The interaction of the producer and the consumer establishes a price.?
true
What does the interaction of a producer and consumer establish?
market price (A+)
What does the interaction of produce and consumer establish?
market price
What is the agreement between the producer and consumer on a price called?
market
The agreement between the producer and consumer on the price is called the?
Market
How are consumer surplus and producer surplus measured?
Consumer surplus and producer surplus are measured using the price applied. Consumer surplus is when a consumer pays a less amount than expected while producer surplus is when a product fetches more money that expected.
What happens if the producer price index goes up?
When the Producer Price Index (PPI) goes up, prices rises. The PPI does not represent prices at the consumer level.
How does the consumer surplus change as the equilibrium price of a good rises or falls?
As the equilibrium price of a good raises the producer surplus increases as well, and as the equilibrium price falls the producer surplus decreases accordingly.
What is the benefits of market mechanism?
it's interaction of demand and supply, price which will decide the consumer needs at specific quantity
True or False If a local Christmas tree farmer is earning a producer surplus on each Christmas tree he sells then his customers cannot enjoy any consumer surplus on the Christmas trees they buy?
False. It depends on the price consumers are willing to pay for the producer's Christmas tree. For example, if the producer is willing to sell his tree at $3 but the market price is $5, then the surplus for the producer is $2. Say, a consumer is willing to buy the tree at $15, then the consumer surplus us $10. Remember that the consumer surplus is the are under the demand curve and above the horizontal line passing through the equilibrium price. As long as this area exists, then it is possible for consumers to enjoy a consumer surplus.
How consumers surplus is converted into producer surplus and vice versa in different market structure?
Once the supply is decreased, consumer surplus will decrease. Producer surplus will decrease as well because neither is at the equillibrium. There will be a surplus leftover after the price increases. Once the supply is decreased, consumer surplus will decrease. Producer surplus will decrease as well because neither is at the equillibrium. There will be a surplus leftover after the price increases.
What will happen to consumer and producer surplus when a price floor is eliminated?
If the price floor was set below the equilibrium price, then the removal of this price floor would have no effect on producer and consumer surplus. If the price floor was set above the equilibrium price for that product, then prices with shift down again to the equilibrium price. Consumers would want to buy more, and producers would want to sell more, until they reach the equilibrium price and quantity. In other words all surpluses of deficits would eventually disappear.
