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What is caused by a raise in the price of a product?
The raise in the price of a product causes an increase in competition.
Why would a firm raise the price of a product after a producer determines that the demand for one of its products is inelastic?
The firm would raise the price because the firm's total revenues would probably increase.
What is the only factor that causes movement along the supply curve?
the price of a product
What factors determine the demand for labor?
causes a movement along the MRP curve: -wage rate causes a shift of the MRP curve: -price of capital -changes in productivity -changes in the price of the firm's product -demand for the product
If a company raise its price for the holiday over the equilibrium pricethe demand will?
If a company chooses to raise prices during the holidays, they will sell less of that product. Some consumers reservation price will be lower than the new price so they will not buy the product. This is represented by a movement along the demand curve, NOT a shift of the demand curve.
What is caused by a raise in the price of a product?
The raise in the price of a product causes an increase in competition.
When businesses raise the price of a needed product or service after a natural disaster this is known as?
Price gouging
What does A raise in the price of a product causes?
The rise in the price of a product is going to cause: 1. consumer demand of product to decrease 2. producers supply decreases 3. equilibrium price is uncertain because both demand and supply are shifting However if demand grows relatively more than supply, price will rise, but if supply grows relatively more than demand, price will fall.
When businesses raise the price of a needed product or service after a natural disaster this is known as .?
price gouging
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)
Why would a firm raise the price of a product after a producer determines that the demand for one of its products is inelastic?
The firm would raise the price because the firm's total revenues would probably increase.
What determines the demand for labors?
causes a movement along the MRP curve: -wage rate causes a shift of the MRP curve: -price of capital -changes in productivity -changes in the price of the firm's product -demand for the product
What is the only factor that causes movement along the supply curve?
the price of a product
What factors determine the demand for labor?
causes a movement along the MRP curve: -wage rate causes a shift of the MRP curve: -price of capital -changes in productivity -changes in the price of the firm's product -demand for the product
If a company raise its price for the holiday over the equilibrium pricethe demand will?
If a company chooses to raise prices during the holidays, they will sell less of that product. Some consumers reservation price will be lower than the new price so they will not buy the product. This is represented by a movement along the demand curve, NOT a shift of the demand curve.
In a perfect market when an individual producer tries to raise their price they will not be able to sell there product?
An individual producer will try to raise the price of a product when there is great demand for the product in relation to supply in order to gain a profit. Other producers in a perfectly competitive market will then lower their prices in order to attract more consumers to their product. This may still produce a profit if enough consumers buy greater quantities of the product to compensate for the low price. Overall this increases demand for the supply.
What does a raise in the price of a product cause?
The rise in the price of a product is going to cause: 1. consumer demand of product to decrease 2. producers supply decreases 3. equilibrium price is uncertain because both demand and supply are shifting However if demand grows relatively more than supply, price will rise, but if supply grows relatively more than demand, price will fall.
