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True, FLVS Economics!!
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What increases if output decreases?
Price.
Why does price decrease as demand decreases?
It does not. If you follow the demand curve it shows that as price decreases, demand increases.
How does inflation reduce buying power?
the price of things has risen while your salary did not, meaning you have lesser number of items you can buy with the money you have as compared to what you could have bought before inflation.
What is a price cut when the demand for a normal good is price inelastic?
Demand is inelastic when changes the in price of a commodity do not effect (or have very little effect) the quantity of that product demanded. For most commodities, demand decreases with price increases and demand increases with price decreases.
What happens to price as demand decreases?
Prices normally increase as demand increases and decrease as demand decreases.
What increases if output decreases?
Price.
Why does price decrease as demand decreases?
It does not. If you follow the demand curve it shows that as price decreases, demand increases.
How does inflation reduce buying power?
the price of things has risen while your salary did not, meaning you have lesser number of items you can buy with the money you have as compared to what you could have bought before inflation.
What is a price cut when the demand for a normal good is price inelastic?
Demand is inelastic when changes the in price of a commodity do not effect (or have very little effect) the quantity of that product demanded. For most commodities, demand decreases with price increases and demand increases with price decreases.
What happens to price as demand decreases?
Prices normally increase as demand increases and decrease as demand decreases.
What factors cause increase in demand when price also increases?
standard of rich peoples...like in purchasing of gold increases when its price also increases.
What are the main determinats of price elasticity?
Well as demand increases the price will usually go up. As supply increases the price will usually go down. On the other hand if demand decreases the price will usually go down. If supply decreases the price will usually go up.
According to Adam Smith what will happen when the demand of a good increases?
The price decreases.
If a bond price increases what happens to yield to maturity?
The YTM on a Bond versus it's Price is inversely related. Thus when the Price of the Bond Increases, the YTM Decreases.
According to Adam Smith what happens when the supply of a product increases?
The price decreases.
What will happen if demand decreases and supply increases?
the price and value of the item will decrease.
What happens when the supply of product decreases according to Adam smith?
The price increases
