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What two things make a product have value?
The principle of "supply and demand". If the supply of a product is higher than the demand, the product is worth less due to its availability. Conversely, if the demand exceeds the supply, then the products is worth more due to its rarity.
What are the determinants that create changes in price?
The main two are supply and demand
Are cross price elasticity of demand and price elasticity of demand same?
No, cross price elasticity of demand and price elasticity of demand are not the same. Price elasticity of demand measures how the quantity demanded of a good responds to changes in its own price, while cross price elasticity of demand measures how the quantity demanded of one good responds to changes in the price of another good. The former focuses on a single product, while the latter examines the relationship between two different products, indicating whether they are substitutes or complements.
What is supply and demand economy?
Supply is how much of the product an economy has. The demand is how much the people need the product. These two make the price. Let's say the supply is high and demand is low, the price would be low. If it was the other way around, price would be higher.
How does demand affect the price?
As demand for a good goes up, the price goes up. So any determinant of demand that has positive or negative effect on demand will have the same affect on the price.Non price factor can have a great influence on demand. For example when I go food shopping I always look for deals or non-price factors. One deal or non price factor that causes me to buy is a deal called buy one get another at equal cost for free. This is a great incentive. This incentive increses a demand for the item. In this case it is steak.
What two things make a product have value?
The principle of "supply and demand". If the supply of a product is higher than the demand, the product is worth less due to its availability. Conversely, if the demand exceeds the supply, then the products is worth more due to its rarity.
What are the determinants that create changes in price?
The main two are supply and demand
Are cross price elasticity of demand and price elasticity of demand same?
No, cross price elasticity of demand and price elasticity of demand are not the same. Price elasticity of demand measures how the quantity demanded of a good responds to changes in its own price, while cross price elasticity of demand measures how the quantity demanded of one good responds to changes in the price of another good. The former focuses on a single product, while the latter examines the relationship between two different products, indicating whether they are substitutes or complements.
Why is aggregate supply related to the price level?
This is in accordance to the Demand & Supply Theory... When the demand for a product is high and its supply is low, this usually causes the price of that commodity to increase Similarly when supply for a product is high and the demand for that product is low, it causes the price of that product to decrease. Hence the supply is inversely related to the price of any product (Provided the Demand is in accordance to the two points mentioned above)
Suply and demand?
Supply And Demand.Demand:- it consists of two components 1. Desire. 2. Ability.the desire component is important in the sense that only having desire for a product or service does not create demand for a product. The desire should accompany the ability component to create demand for a product and service. Therefore, we can say that demand is willingness and ability to buy something.Supply:- it means the availability of a product and service in the market.According to the law of demand and supply, when demand increases, supply shrinks which leads to increase in prices.
What is supply and demand economy?
Supply is how much of the product an economy has. The demand is how much the people need the product. These two make the price. Let's say the supply is high and demand is low, the price would be low. If it was the other way around, price would be higher.
When two or more things affect each other it is called?
When two or more things affect each other, it is called interdependence. This term describes a relationship where changes in one element lead to changes in the others.
What are the 2 factors that effect an objects momentum?
The two factors that affect an object's momentum are its mass and its velocity. Momentum is calculated as the product of an object's mass and its velocity, so changes in either of these factors will impact the momentum of the object.
What are two external factors to be considered when setting the price for the product?
When setting the price of products organizations much consider competition. Another aspect the need to consider is the demand for their product.
How does demand affect the price?
As demand for a good goes up, the price goes up. So any determinant of demand that has positive or negative effect on demand will have the same affect on the price.Non price factor can have a great influence on demand. For example when I go food shopping I always look for deals or non-price factors. One deal or non price factor that causes me to buy is a deal called buy one get another at equal cost for free. This is a great incentive. This incentive increses a demand for the item. In this case it is steak.
Why is the demand for labor referred to as a derived demand?
Derived demand results from a demand for increase in intermediates goods or production resulting from another demand resulting for final or intermediate goods. For example, a demand for an item can make its production increase, which makes its labor increase.
What happens when the demand for one good or service results in the demand for another?
When the demand for one good or service leads to an increase in the demand for another, it is known as complementary demand. This means that the two goods or services are often used together or are seen as related in some way. As a result, an increase in the demand for one product will typically lead to an increase in the demand for the other.
