0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
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 is most likely to lead to a decrease in the price of a good?
Demand decreases and supply remains the same.
What is most likely to lead to a decrease in the price of goods?
Demand decreases and supply remains the same.
What happens to demand for normal and inferior goods when there is a decrease in your income?
the demand for inferior goods varies inversely with income. If your income rises then the demand for rice will decrease. the demand for normal goods varies directly with income. If your income rises the demand for these goods will rise as well. Most goods are normal goods ie, cars, new homes, furniture, steaks, and motel rooms. Economics, Stephen L Slavin 10e
Is there a difference between a normal good and inferior good?
Yes, a normal good is a good that's demand increases as your income increases, an inferior good is a good that's demand decreases when income increases. An example of a normal good, is easy to find, most goods are normal, meaning you want more of them when you have more money. An inferior good is something like fast food, as you earn more income, you will usually demand less of it.
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 is most likely to lead to a decrease in the price of a good?
Demand decreases and supply remains the same.
What most likely to lead to a decrease in the price of a good?
Demand decreases and supply remains the same.
What is most likely to lead to a decrease in the price of goods?
Demand decreases and supply remains the same.
What happens to demand for normal and inferior goods when there is a decrease in your income?
the demand for inferior goods varies inversely with income. If your income rises then the demand for rice will decrease. the demand for normal goods varies directly with income. If your income rises the demand for these goods will rise as well. Most goods are normal goods ie, cars, new homes, furniture, steaks, and motel rooms. Economics, Stephen L Slavin 10e
Is there a difference between a normal good and inferior good?
Yes, a normal good is a good that's demand increases as your income increases, an inferior good is a good that's demand decreases when income increases. An example of a normal good, is easy to find, most goods are normal, meaning you want more of them when you have more money. An inferior good is something like fast food, as you earn more income, you will usually demand less of it.
If the demand for a good is inelastic and the price of the good decreases?
Increase. Inelastic demand means that most consumers will continue to buy a good regardless of price.
How does consumer income affect the demand for normal and inferior goods?
A consumers income can affect their demand for most goods, for normal goods if the consumers income increases then there is a demand for more normal good, but a fall in income would cause a shift to the left for the demand curve, this shift is called a decrease in command. For inferior goods, an increase in income causes demand for these goods to fall, inferior goods are goods that you would buy in smaller quantities, or not at all, if your income were to rise and you could afford something better.
What happens to net personal income when the government raises taxes?
Generally if your gross income stays the same and the government raises taxes, it decreases your net personal income. On the macro scale, as government raises taxes, most people's net personal income decreases, which means their disposable income also decreases. Since their disposable income decreases, they spend less (unless they want to just get deeper in debt), which further decreases the gross income of those they buy goods and services from with their disposable income. This can actually lead to a decrease in total tax revenue as the gross incomes of the population can drop a greater percentage than the increased percentage of the taxes; 40% of $80,000 is only $32,000 while 35% of $100,000 is $35,000.
An increase in aggregate demand is most likely to be caused by a decrease in?
The tax rates on household income.
What two products form most Of Africa's export income?
Uranium and diamonds
Which of these is most likely to lead to a decrease in the price of a good?
Demand decreases and supply remains the same would lead to a decrease in the price of a good.
