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The positive effects of a rise of the price of a particular commodity, i.e. a relative price rise, include the re-allocation of resources to increase production of that commodity (unless prevented by e.g. a quota, or unless supply is perfectly inelastic).
The positive effect of a general price rise (i.e. price inflation without a change in price ratios) is supposed to be that, absent economy-wide indexation, it allows a downward adjustment or real prices for goods and services that are sticky downwards in nominal terms. The examples usually given are wages (generally) wages in declining industries, and house prices.
More cynically, one might say that from the point of view of the government the positive effect of a general price rise (even when wages are indexed) is the stealthy increase of tax rates through bracket creep.
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Explain the effects of a rise in the price on market when the price elasticity of demand for product is inelastic?
Revenue of the producer will increase since there will be no change in quantity demanded.
Why do the demand curve slope downward?
The demand curve will have a downward slope indicating ________ . A. the expansion of demand with a fall in price B. contraction of demand with a rise in price C. the expansion of demand with a fall in price and contraction of demand with a rise in price D. rise in price causes a rise in supply
What happens when the equilibrium price is lower than the market price?
When the market price is lower than the equilibrium price the price of the product will continue to rise. The price will rise until it equal the equilibrium price.
What are the positive and negative effects of globalization to hospitality industry?
what are the positive and negative effects of globalization to hopitality industry?
What are the economic effects of a depreciation of the dollar on foreign exchange markets?
When the dollar depreciates (dollar price of foreign currencies rises), U.S. exports rise and U.S imports fall.
What were the positive and negative effects of the rise of big business?
mores jobs
What is the key friction that gives rise to nominal price rigidities and non neutral effects of monetary policy?
Temporary price rigidities are the key friction that gives rise to nominal price rigidities.
Explain the effects of a rise in the price on market when the price elasticity of demand for product is inelastic?
Revenue of the producer will increase since there will be no change in quantity demanded.
What factors contribute to the rise of a stock price?
Several factors can contribute to the rise of a stock price, including strong company performance, positive earnings reports, market trends, investor sentiment, economic conditions, and overall market demand for the stock.
What are the positive and negative effects of money?
what is the positive and nagetive effects
For a negative slope the rise is and the run is positive?
For a negative slope, the rise is negative and the run is positive.
What is the difference of positive effects and benefits?
What is the difference of positive effects and ben
What is the rise of a line?
Rise of a line is a positive slope.
What is positive spillover?
the positive effects soemthing has on other people the positive effects soemthing has on other people
What are positive effects of anorexia?
There aren't really any positive effects of anorexia.
Why do the demand curve slope downward?
The demand curve will have a downward slope indicating ________ . A. the expansion of demand with a fall in price B. contraction of demand with a rise in price C. the expansion of demand with a fall in price and contraction of demand with a rise in price D. rise in price causes a rise in supply
If the rise and the run are both positive numbers what would the slope of a line be?
Whether both are positive or not, you divide rise / run.
