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If the quantity demanded of the products suddenly increases in response to a reduction in the price or if the quantity demand decreases after a price increase what are the consumers are responding to?
Patrickwagstaff73096...
Price signals
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∙ 9y ago
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What is a price reduction?
Where the price of a particular item goes down or decreases
What occurs when there is an increase in prices that decreases the amount of a good or service you can bu?
Inflation is the word used to describe a general increase in prices and reduction in purchasing power of money.
A stock price falls. Where has the money gone that investors had paid for the stock?
There are a two ways to look at this question:When a stock is purchased, funds are transferred from the buyer to the seller. Thus, the stock's reduction of value does not change the amount of money in the system. The decline in the stock's value is reflected as a decline in wealth for the stock holder but in a "non-currency" manner.If the stock purchased was from a short seller, than the decline in stock value decreases the wealth of the stock holder but increases the wealth of the short seller.
Suppose the government places a sales tax on firms in a monopolistically competitive industry Explain what happens to the equilibrium price and the number of the firms in the industry?
The supply curve shifts upward because of the tax, so the equilibrium price increases, but the price the sellers receive decreases. Because the sellers' price decreases, the firms are making a loss, so some firms drop out of the market.IF THE GOVERRNMENT PLACES A SALES TAX ON FIRMS IN AMONOPOLISTICALLY COMPETITIVE INDUSTRY,THE REACTION WOULD VARY-with the nature of product-with the nature of market factors-with the high value/ low value of the products-RATE OF THE THE SALES TAX.etc.-----------------------------------------------------------IF THE RATE OF THE SALES TAX WAS 2/3%,IT WILL HAVE NO IMPACT .----------------------------------------------------------------------IF THE RATE OF THE SALES TAX WAS WAS 10/12 %,IT WILL CREATE AN IMPACT ON THE MARKET.-the sensitive customers will move over to the cheaper substitutes.-the reduction in sales volumes will affect the channels/ resellersas they will shift to other substitutes.-the volume reduction will affect the productivity of the firms.-the volume reduction will affect the unit production cost.HENCE SUCH MARGINAL PLAYERS WILL CLOSE THE PRODUCTION UNIT.ONLY LARGE VOLUME MANUFACTURERS CAN SUSTAINTHE SALES AND MANAGE TO STAY IN THE MARKET.
When the federal reserve reduces the money supply what happens to the GDP and price level?
The reduction in the money supply increases the price level, causes deflation, and may increase or decrease the GDP depending on the level of rational expectations.
What happen to atoms in an oxidation-reduction reaction?
The oxidation state of one atom increases while another decreases.
What happens to atoms in an oxidation - reduction reaction?
The oxidation state of one atom increases while another decreases.
What happens to atoms in a oxidation reduction reaction?
The oxidation state of one atom increases while another decreases.
What is cell reduction?
When a cell decreases in size.
Why reduction reaction is called reduction?
Because it gains electrons ,therefore its valency decreases : it becomes Negative
Why is NO3 to NO a reduction?
because the oxidation state of N decreases
What happens to atoms in an oxidation-reduction reaction?
The oxidation state of one atom increases while another decreases.
What is a price reduction?
Where the price of a particular item goes down or decreases
What is happening to the substances mass and volume to cause this decrease in density?
A decrease in density would indicate a reduction in mass relative to the volume. If the mass decreases but the volume remains the same or increases, then the density would decrease.
Why induction motor current increase when load increase?
The slip is proportional to the load torque in an induction motor. This can also be seen as a reduction in speed causing extra current to be induced in the rotor to supply the increased torque.
Principle of peak AGC system?
A peak-based AGC system, such as is required for SSB, will reduce the receiver gain by 6 dB as the modulating percentage increases from 0% to 100%. A receiver with a peak-responding AGC system will, in theory, cause a gain reduction as modulation percentage increases and a gain increase as the modulation level decreases. (Thanks to Clifton Laboratories 7236 Clifton Road Clifton VA 20124 tel: (703) 830 0368 fax: (703) 830 0711 E-mail: Jack.Smith@cliftonlaboratories.com)
Why do aeroplanes fly only in strato sphere?
Basically, the higher you go the thinner the atmosphere. Therefore, there is a reduction in drag, which decreases fuel comsumption and thus increases range and efficiency, as well as diminuishing friction stress which damage the aircraft.
