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What will happen to the equilibrium price and quantity of a normal good if the demand for the good increases and supply constant?
the equilibrium price rises and the quantity increases
Price of related goods?
Demand for good or service increases if the price of related goods increases, and vice versa.
The law of demand indicates that as the price of a good increases?
Buyers
What happens when price of a good increases?
So the supply also increase's.
IF A firm supplied 3000 pens at the rate of rs 10next month due to a rise of in the price to 22rs per pen the supply of the firm increases to 5000 pens WHAT IS the elasticity of supply of the pens?
Answer=1.32 is this correct?
What happens when demand for a good increase but it's supply decrease?
The price for the good increases
What will happen to the equilibrium price and quantity of a normal good if the demand for the good increases and supply constant?
the equilibrium price rises and the quantity increases
Price of related goods?
Demand for good or service increases if the price of related goods increases, and vice versa.
Definition for ''law of demand''?
In economics, the law of demand states:- As the price of a good or service increases, the demand for that good or service will decrease.- As the price of a good or service decreases, the demand for that good or service will increases.
The law of demand indicates that as the price of a good increases?
Buyers
What happens when price of a good increases?
So the supply also increase's.
IF A firm supplied 3000 pens at the rate of rs 10next month due to a rise of in the price to 22rs per pen the supply of the firm increases to 5000 pens WHAT IS the elasticity of supply of the pens?
Answer=1.32 is this correct?
Why aggregate spending decrease as the price level increases?
Because if a price level is higher for a good, aggregate spending will decrease as the level of the price increases. And vice versa - the cheaper a good is, OR the MORE that your money will buy, the more likely you are to spend that money.
Characteristics of a monopolistic competitive market?
one firm which sells a good price set by that firm hard for other firms to enter market
According to Adam Smith what happens when the supply of a good decreases?
The price increases-
What is a price cut when the demand for a normal good is price inelastic?
Demand is inelastic when changes the in price of a commodity do not effect (or have very little effect) the quantity of that product demanded. For most commodities, demand decreases with price increases and demand increases with price decreases.
What determines the quantity of a good that seller suply?
It's good to start with a definition of supply. Supply is the willingness and ability of a firm to supply a good (or service). Ultimately what determines the amount a firm supplies is the market price of the good. Most supply curves are upward sloping to the right (in other words a positive gradient) meaning that as price increases, supply extends. This is because as the price of the good goes up, the more willing and able a firm will be to produce a good. The supply curve is the firms marginal cost curve above above the average variable cost curve. This is because in the short run firms only need to cover their variable costs. Below this firms cannot survive and thus will not operate (this is known as the shut down condition). Ultimately the quantity of a good supplied is determined by the price. Hope that helps. Talha Emir Kaplan
