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Prices increase due to the increase in production costs.

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Q: When the price of a capital good increases what happens to the prices of related consumer goods and services Why?
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Related questions

When the price of a capital good increases what happens to the price of related consumer goods and services?

Prices increase due to the increase in production costs.


When the price of capital good increases what happens to the prices of the related consumer goods and services and why?

Prices increase due to the increase in production costs.


When a price of a capital good increases what happens to the prices of related consumer goods and services Why?

Prices increase due to the increase in production costs.


When the price of a capital good increase what happens to the prices of related consumer goods and services?

Prices increase due to the increase in production cost.


When the price of a capital good increase what happens to the prices of related consumer goods and services Why?

Prices increase due to the increase in production costs.


What happens when the cost of capital increases?

The market value of a firm's equity increases, the cost of capital decreases.


When the price of a capital good increases what happens to the prices of related consumers goods and services?

Prices increase due to the increase in production costs.


When there is a scarcity in availability of a raw material what happens to the consumer price?

It Increases...


As price falls along a particular demand curve what happens to consumer surplus?

it always increases


What happens to the economy when the economy's capital stock increases?

Supposing that with capital you mean physical capital (all kind of physical investments like machines, and so on), it tends to increase the Gross Domestic Product (GDP), but increases in capital along time lead to lower increases in GDP.This is known in economics as the diminishing marginal returns.


What happens to a preferred share if the government increases capital by buying common shares of a bank?

we can became ungry


What happens to consumer surplus when demand increases?

Consumer surplus is the hypothetical monetary gain of consumers because they are able to buy a product for a price lower than they are originally willing to pay. When demand increases, supply (which is inversely proportional to demand) decreases, and as a result, prices increase. When prices increase, consumer surplus decreases.