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A new technology allows producers to increase supply very quickly.
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∙ 12y ago
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Inelastic demand curve?
Inelastic demand means a situation in which the demand for a product does not increase or decrease correspondingly with a fall or rise in its price. From the supplier's viewpoint, this is a highly desirable situation because price and total revenue are directly related; an increase in price increases total revenue despite a fall in the quantity demanded. An example of a product with inelastic demand is gasoline. Refer to link below.
What describes a situation in which a price of a good would rise?
Demand goes up or supply goes down. - Producers cannot make enough of a good when that good becomes popular. - The raw materials or production capability for a good is unexpectedly reduced.
Why does demand fall?
Demand drops when the price of the demanded good rise.But also demand of a certain good may drop when the price of substitute fall
How is current demand related to the future price of a good?
If the price is expected to drop, current demand will fall.
In which situation with the price of a good be most likely to decrease?
The price of a good can decrease if supply is greater than demand. The price can also decrease if that item has been superseded by a newer version.
What describes a situation in which the price of a good would fall?
the community is crazy
Inelastic demand curve?
Inelastic demand means a situation in which the demand for a product does not increase or decrease correspondingly with a fall or rise in its price. From the supplier's viewpoint, this is a highly desirable situation because price and total revenue are directly related; an increase in price increases total revenue despite a fall in the quantity demanded. An example of a product with inelastic demand is gasoline. Refer to link below.
What describes a situation which the price of a good would rise?
A new technology allows producers to increase supply very quickly
What describes a situation in which a price of a good would rise?
Demand goes up or supply goes down. - Producers cannot make enough of a good when that good becomes popular. - The raw materials or production capability for a good is unexpectedly reduced.
Why does demand fall?
Demand drops when the price of the demanded good rise.But also demand of a certain good may drop when the price of substitute fall
How is current demand related to the future price of a good?
If the price is expected to drop, current demand will fall.
How is the current demand for a good related to is future price?
If the price is expected to drop, current demand will fall.
How is the current demand for a good related to its future prices?
If the price is expected to drop, current demand will fall.
In which situation with the price of a good be most likely to decrease?
The price of a good can decrease if supply is greater than demand. The price can also decrease if that item has been superseded by a newer version.
What describes the substitution effect?
As the price of a good rises, people will substitute other products.
Which of the following describes a situation in which a shortage occurs?
A shortage occurs when the quantity demanded for a good or service exceeds the quantity supplied at a given price, leading to a situation where not all consumers are able to purchase the product they desire. This can result in price increases as sellers try to balance the demand and supply.
Price of substitutes and complements vs price of commodities?
Relationship of good price to price of substitutes and complements: 1) Substitutes: as the price of substitutes for a good falls, the price of a good must fall in order to maintain demand. 2) Complements: as the price of complements falls, the price of a good can increase and still maintain the same level of demand.
