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Does demand rise as the prise rises according to the law of supply?

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What effect do consumer-protection regulations have on the circle flow of the free market system?

Consumer-protection regulations aim to enhance buyer safety and promote fair practices, thereby fostering trust in the market. This can lead to increased consumer spending, as people feel more secure making purchases. However, such regulations may also impose additional costs on businesses, which can affect pricing and supply. Overall, while these regulations can stimulate demand, they may also introduce complexities in the supply side of the circular flow in a free market system.


What is the definition of corporate sector?

A Corporate Sector is a section of society consisting of Companies/Industries/Business Houses. They are the industrial development side of our society. They contribute to National Income Generation, Infrastructural Growth and Development of the Economy. They represent the Producer side of Economy and we represent the Consumer Side of Economy, We consume what they produce ( services included). They generate income, we help them generate the same. The y foster regional- national- societal growth, we enable them achieve their goals.


Is it true that an increase in the money supply is more likely to cause supply-side inflation than demand-side inflation?

An increase in the money supply typically leads to demand-side inflation, as more money in circulation can boost consumer spending and demand for goods and services. However, if the increase in money supply also leads to higher production costs (e.g., due to increased wages or material costs), it can contribute to supply-side inflation. Ultimately, the context and underlying economic conditions determine the primary type of inflation that may arise.


Why do people study economics?

1. To learn how to distribute scarce resources efficiently. 2. To understand how the market will react to certain actions (Both on the consumer side and supplier side). 3. Help make predictions as to when prices increase/decrease. 4. Find out how to minimize your costs and maximize your profits/benefits/outputs. 5. Be able to figure out how to work at the margin. 6. Help make rational decisions.

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