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Does the changing of petrol price affect the rate of inflation?
The changing of petrol price affects the rate of inflation. When petrol price increases, it follows that the cost of production and transportation of most goods also increase.
If the price of a complementary good increases, how will it affect the demand for the main product?
If the price of a complementary good increases, the demand for the main product will decrease.
According to Adam Smith what will happen when the demand of a good increases?
The price decreases.
How does a change in price affect consumer behavior in terms of substitution versus income effect?
A change in price can affect consumer behavior in two main ways: substitution effect and income effect. The substitution effect occurs when consumers switch to a cheaper alternative when the price of a product increases. The income effect refers to how a change in price impacts the purchasing power of consumers, influencing their overall buying decisions.
What shows an economy's production after the distortions of price increases have been removed?
the business cycle
How do technologies affect our economic decisions?
the consumer economic decisions can affect the price and supply of a commodity
Does the changing of petrol price affect the rate of inflation?
The changing of petrol price affects the rate of inflation. When petrol price increases, it follows that the cost of production and transportation of most goods also increase.
If the price of a complementary good increases, how will it affect the demand for the main product?
If the price of a complementary good increases, the demand for the main product will decrease.
According to Adam Smith what will happen when the demand of a good increases?
The price decreases.
How does a change in price affect consumer behavior in terms of substitution versus income effect?
A change in price can affect consumer behavior in two main ways: substitution effect and income effect. The substitution effect occurs when consumers switch to a cheaper alternative when the price of a product increases. The income effect refers to how a change in price impacts the purchasing power of consumers, influencing their overall buying decisions.
How does pricing affect product decisions?
Assuming you mean price of supplies: Finding ways to optimize the processes and making production more efficient and less costly. Or the good old staff lay offs.
When the price of a capital good increases what happens to the price of related consumer goods and services?
Prices increase due to the increase in production costs.
What shows an economy's production after the distortions of price increases have been removed?
the business cycle
Explain how a change in price affects the demand for a product substitutes?
The change in price can affect the demand for that product. If the price increases people will look for cheaper substitutes.
How does the imposition of a tax on sellers of a product affect the demand curve?
When a tax is imposed on sellers of a product, it increases the cost of production for the sellers. This leads to a decrease in the quantity supplied at each price level, shifting the supply curve to the left. As a result, the equilibrium price increases and the equilibrium quantity decreases. This change in price and quantity causes the demand curve to shift to the left, reflecting a decrease in demand for the product due to the higher price.
How does the price of a product or service affect its supply?
The price of a product or service directly influences its supply. When the price of a product or service increases, suppliers are more willing to produce and sell more of it to take advantage of the higher profits. This leads to an increase in supply. Conversely, if the price decreases, suppliers may reduce production or supply, as it may not be as profitable for them.
Supply curves are positively sloped because?
The Supply Curve has a positive slope because as the selling price of the product increases, the willingness of producers to create that product increases as well. With the greater incentive to make that product, production will rise in direct proportion to how much price increases.
