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This implies that quantity demanded increases when price decreases. Is this always true?
While it is generally true that quantity demanded increases as price decreases, this relationship is not absolute. Factors such as consumer preferences, income levels, and the availability of substitutes can influence demand. Additionally, for certain goods known as Giffen or Veblen goods, the relationship may not hold, as demand may rise even with higher prices. Thus, the law of demand applies in many cases, but exceptions exist.
What else can I help you with?
Why do economists use the term law when they describe demand?
Economists use the term "law" in the context of demand to signify a consistent and observable relationship between price and quantity demanded, known as the Law of Demand. This principle states that, all else being equal, as the price of a good decreases, the quantity demanded by consumers increases, and vice versa. The term "law" implies a general rule that holds true across various market conditions, reflecting predictable consumer behavior. However, it's important to note that this "law" can be influenced by factors such as consumer preferences, income levels, and the availability of substitutes.
What is the difference between the multiplier and the accelerator?
the multiplier principle implies that investment increases output whereas the acceleration principle implies that increases in output will themselves induce increases in investment.
What is the cross elasticity of demand of demand of good Y forgood X?
The cross elasticity of demand measures how the quantity demanded of good Y responds to a change in the price of good X. It is calculated as the percentage change in the quantity demanded of good Y divided by the percentage change in the price of good X. A positive cross elasticity indicates that goods X and Y are substitutes, while a negative value suggests they are complements. If the elasticity is zero, it implies that the goods are unrelated.
What are the types of income elasticity of demand?
Income elasticity of demand(EY):Income elasticity of demand measures the relationship between a change in quantity demanded and a change in income. Income elasticity of demand measures the degree responsiveness or reaction of the demand for a good to a change in the income of the consumer. It is calculated as the ratio of the percentage change in demand to the percentage change in income. In other words, it is defined as the rate of percentage change in quantity demanded resulted from percentage change in consumer's income. For example, if, in response to a 10% increase in income, the demand for a good increased by 20%, the income elasticity of demand would be 20%/10% = 2.Types of Income elasticity:i. Zero Income Elasticity of DemandZero income elasticity of demand is that in which quantity demand for a commodity remains constant to any change in income of the consumer. The value of the zero income elasticity is zero. It can be found in case of neutral goods. Graphically it can be explained asIn the graph, quantity demand is measured in X-axisand income is measured in Y-axis. DD is the demandcurve which is parallel to Y-axis implying that nochange in quantity demanded to any change inconsumer's income. Income is varying from Y1to Y2 and Y2 but quantity demand remain thesame quantity at Q1.ii. Positive Income Elasticity of Demand(EY>0)Positive income elasticity of demand is that in which increase in consumer's income leads to increase in quantity demanded and vice-versa. The numerical value of positive income elasticity is always greater than zero which may be greater than(for luxurious goods) or equal (for normal goods)or less than(for necessity goods) unity i.e. 1. For example, when consumers become reach or increase their income then they spend more on luxurious goods. On the contrary, consumers purchase less quantity of luxurious goods if their income decrease or they become poor. It can be further explained with the help of following figureIn the given figure, DD is the demand curve which is positivelyslopped. This demand curve implies, when consumers incomeincreases from Y1 to Y2 as in figure then consumer demandedmore quantity i.e. increases quantity from Q1 to Q2 accordingto figure.i. Negative Income Elasticity of Demand(EY
DO Average cost always falls as output increases because fixed costs will be spread more thinly?
Not necessarily. Total Cost = Fixed Cost + Variable Cost; Variable Cost=f(Quantity) and if f`(Quantity)>0 it implies that as quantity produced rises variable cost would rise. Average Total Cost=Average Fixed Cost + Average Variable Cost. If initially the Total Cost function is more of an odd function (mostly it is) then the Average Cost will look more like a parabola i.e. it will tend to fall becuase the Fixed Cost gets thin but later that is overtaken by the increase in Variable Cost. But there are cases when Average Total Cost does fall continuously as quantity increases and these involve huge Fixed Costs like say Electric Supply Infrastructure. This is called natural monopoly.
Positive correlation implies what--dependent variable improves as independent variable increases or dependent variable decreases as independent variable increases or?
dependent variable improves (or increases) as independent variable increases
Why do economists use the term law when they describe demand?
Economists use the term "law" in the context of demand to signify a consistent and observable relationship between price and quantity demanded, known as the Law of Demand. This principle states that, all else being equal, as the price of a good decreases, the quantity demanded by consumers increases, and vice versa. The term "law" implies a general rule that holds true across various market conditions, reflecting predictable consumer behavior. However, it's important to note that this "law" can be influenced by factors such as consumer preferences, income levels, and the availability of substitutes.
How does the frequency of a gamma ray change as tis wavelength decreases?
As the wavelength of a gamma ray decreases, its frequency increases. This is because frequency and wavelength are inversely proportional to each other, meaning that as one increases, the other decreases. So, as the wavelength of a gamma ray decreases, the number of waves passing a point per second (frequency) increases.
What is the difference between the multiplier and the accelerator?
the multiplier principle implies that investment increases output whereas the acceleration principle implies that increases in output will themselves induce increases in investment.
What is the cross elasticity of demand of demand of good Y forgood X?
The cross elasticity of demand measures how the quantity demanded of good Y responds to a change in the price of good X. It is calculated as the percentage change in the quantity demanded of good Y divided by the percentage change in the price of good X. A positive cross elasticity indicates that goods X and Y are substitutes, while a negative value suggests they are complements. If the elasticity is zero, it implies that the goods are unrelated.
An exponential growth function represents a quantity that has a constant doubling time?
True
What are the types of income elasticity of demand?
Income elasticity of demand(EY):Income elasticity of demand measures the relationship between a change in quantity demanded and a change in income. Income elasticity of demand measures the degree responsiveness or reaction of the demand for a good to a change in the income of the consumer. It is calculated as the ratio of the percentage change in demand to the percentage change in income. In other words, it is defined as the rate of percentage change in quantity demanded resulted from percentage change in consumer's income. For example, if, in response to a 10% increase in income, the demand for a good increased by 20%, the income elasticity of demand would be 20%/10% = 2.Types of Income elasticity:i. Zero Income Elasticity of DemandZero income elasticity of demand is that in which quantity demand for a commodity remains constant to any change in income of the consumer. The value of the zero income elasticity is zero. It can be found in case of neutral goods. Graphically it can be explained asIn the graph, quantity demand is measured in X-axisand income is measured in Y-axis. DD is the demandcurve which is parallel to Y-axis implying that nochange in quantity demanded to any change inconsumer's income. Income is varying from Y1to Y2 and Y2 but quantity demand remain thesame quantity at Q1.ii. Positive Income Elasticity of Demand(EY>0)Positive income elasticity of demand is that in which increase in consumer's income leads to increase in quantity demanded and vice-versa. The numerical value of positive income elasticity is always greater than zero which may be greater than(for luxurious goods) or equal (for normal goods)or less than(for necessity goods) unity i.e. 1. For example, when consumers become reach or increase their income then they spend more on luxurious goods. On the contrary, consumers purchase less quantity of luxurious goods if their income decrease or they become poor. It can be further explained with the help of following figureIn the given figure, DD is the demand curve which is positivelyslopped. This demand curve implies, when consumers incomeincreases from Y1 to Y2 as in figure then consumer demandedmore quantity i.e. increases quantity from Q1 to Q2 accordingto figure.i. Negative Income Elasticity of Demand(EY
What does it mean to say that current and voltage in a circuit are directly related?
It means that when one increases, the other increases as well. Also, it implies that this increase is proportional - if the voltage is doubled, the current will also double. Note 1: Normally, the voltage is considered the independent quantity; that's the quantity you can control directly. And if the voltage changes, so will the current. Note 2: In simple circuits, such as those that only have a voltage source and resistors, the relation will be a direct proportion. With electronic components, such as a transistor, the relationships can be more complicated.
What is the difference between fewest and least?
Fewest implies a numerical quantity. Least can, too, but not necessarily (it can refer to a non-numerical level or degree).
Which semiconductor have positive temperature coefficient?
With the increase in temperature if the resistance increases or the current in the circuit decreases then it is said to be have positive temperature coefficient .But in semi-conductors with the increase in temperature the electrons present in the valance band are excited and they would enter the conduction band for conduction . As the no. of charge carriers always increase in a semi-conductor , implies that the current always increases with the increase in temperature so the semi-conductor can never have positive temperature coefficient
How does the total distance changes as the total time increases in case of uniformly motio?
For uniform motion, distance = velocity*time where uniform implies that the velocity is a constant. Therefore distance = v*time and so, if time increases by t, the distance increases by vt.
Does currency appreciate or depreciate if the forward rate increases?
If the forward rate increases, it indicates that the currency will depreciate in the future. This is because a higher forward rate implies that the currency will be worth less in the future compared to the present.
