Demand decreases and supply remains the same.
Demand decreases and supply remains the same would lead to a decrease in the price of a good.
Annual profits decrease
Its annual profits decrease.
If goods A and B are substitutes, a decrease in the price of good B will likely lead to a decrease in the demand for good A. Consumers will find good B more attractive due to its lower price, leading them to purchase more of B instead of A. Consequently, the demand curve for good A shifts leftward, potentially reducing its equilibrium price and quantity.
Demand decreases and supply remains the same.
Its annual profits decrease.
Demand decreases and supply remains the same would lead to a decrease in the price of a good.
Annual profits decrease
Its annual profits decrease.
If two goods are complementary, an increase in the price of one good will lead to a decrease in the demand for the other good. This is because consumers typically use these goods together, so if one becomes more expensive, they are less likely to purchase both. Conversely, a decrease in the price of one good can increase the demand for both goods.
Demand decreases and supply remains the same.
Demand decreases and supply remains the same.
A higher price will cause an increase in supply, assuming that all other factors remain constant. Likewise, a decrease in price will cause a decrease of supply and an increase in demand.
Demand decreases and supply remains the same.
Demand decreases and supply remains the same.
Complementary goods are products that are used together, such as peanut butter and jelly. When the price of one complementary good changes, it can impact the demand for the other. For example, if the price of peanut butter increases, consumers may buy less jelly as they are less likely to use it. This can lead to a decrease in overall market demand for both goods.
A decrease in the price level can increase real wealth because people's money can buy more goods and services. This can lead to an increase in aggregate demand as consumers are more willing to spend money, which can stimulate economic growth.