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Explain why demand curves slope downwards while supply curves slope upwards Mention the exception?
Demand curves slope down because as price decreases for goods, demand increases. Supply curves slope upwards because the higher the price, the more goods a supplier wishes to supply to the market.
There are two exceptions:
1. When a good is more fashionable at a higher price (like designer jeans) referred to as Veblen Goods.
2. Inferior goods for which there is no cheaper close substitutes referred to Geffen Goods.
What else can I help you with?
Why is adjusting the WACC upwards consistent with the overall corporate goal of shareholder wealth maximization?
why? isn't it to adjust it downwards to max. shareholders wealth?
Why does the LM curve slope upwards?
In equilibrium: Money supply = Money demand.Summarizing it, we can explain the upward sloping LM curve as following:If income is high then thedemand for money will be high relative to the fixed supply. In order to equilibrate money demand and money supply, interest rates have to also be high to reduce money demand
What direction does the supply curve slope from the left to right?
Supply curves do not always slope from left to right. A supply curve can slope from the right and when this happens this means that there is a surplus of goods at a lower price.
What is the relationship between a firm's production costs and the shape of its long run average cost curve?
In general, a firm's production costs are directly related to the shape of its long-run average cost curve. As production costs decrease, the long-run average cost curve tends to slope downwards, indicating economies of scale. Conversely, as production costs increase, the curve may slope upwards, indicating diseconomies of scale. Ultimately, the shape of the long-run average cost curve reflects how efficiently a firm can produce goods or services at different levels of output.
How does a demand curve slopes upwards?
The ratio between the demand and the supply of a commodity goes up when the supply diminishes or the price is increased.
Does lightning travel upwards or downwards in the atmosphere?
Lightning travels both upwards and downwards in the atmosphere.
Does a black hole move upwards or downwards?
Downwards
What is the antonym for downwards?
upwards
Can crabs swim upwards?
yes, crabs can swim left, right, upwards and downwards
Does lightning strike upwards?
No, lightning does not strike upwards. Lightning typically strikes downwards from the clouds to the ground.
What can extend the staff upwards downwards as in this example?
Ledger lines
What is accomplished by turning the coarse adjustment upwards then downwards?
we dont have answer
What Can extend the staff upwards or downwards as in this example.?
Ledger lines
What is between a mountain and a hill?
they both have an upwards and downwards climate
What is a compound word with wards in it?
backwards, forwards. upwards, downwards
What is accomplished by turning the coarse adjustment then upwards and downwards?
we dont have answer
When object moves upwards what is the velocity and acceleration?
When an object is moving upwards, its velocity is directed upwards. If the object is near the Earth or any other planet, then its acceleration is directed downwards, which also means that its upward velocity is decreasing.
