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Why in order to reduce the money supply the Fed might sell securities in the open market operations?
Because that is how FED removes money from circulation, thus reducing money supply. The opposite would be buying securities in open market operations in order to increase money supply.
Which factor might cause an increase in the supply of a product?
the introduction of new technology
The government might enact a price ceiling in order to accomplish what?
The government may impose a price ceiling in order to increase supply.
Exceptions of law of supply?
Many ExceptionsWhile the law of supply generally reflects what happens on the supply side of market, it is not a universal principle that applies to all markets under all circumstances. There are, in fact, numerous important exceptions to the law of supply. In particular, if the supply side of the market is controlled by small number of sellers (including a single seller), then the law of supply might not operate. For example, monopoly, which is a market with a single seller, is not necessarily inclined to offer a larger quantity supplied even though the price is higher. Market control by the monopoly allows it to set the market price based on demand conditions, without cost constraints imposed from the supply side. Other market structures, including oligopoly andmonopolistic competition, might have more competition, but market control can also negate the law of supply.
Why might the Fed want to increase the money supply?
think about it, if the economy expanse, more money will be needed
Why in order to reduce the money supply the Fed might sell securities in the open market operations?
Because that is how FED removes money from circulation, thus reducing money supply. The opposite would be buying securities in open market operations in order to increase money supply.
How does minimum wage impact the labor market?
it might result in a surplus of supply
Which factor might cause an increase in the supply of a product?
the introduction of new technology
The government might enact a price ceiling in order to accomplish what?
The government may impose a price ceiling in order to increase supply.
Exceptions of law of supply?
Many ExceptionsWhile the law of supply generally reflects what happens on the supply side of market, it is not a universal principle that applies to all markets under all circumstances. There are, in fact, numerous important exceptions to the law of supply. In particular, if the supply side of the market is controlled by small number of sellers (including a single seller), then the law of supply might not operate. For example, monopoly, which is a market with a single seller, is not necessarily inclined to offer a larger quantity supplied even though the price is higher. Market control by the monopoly allows it to set the market price based on demand conditions, without cost constraints imposed from the supply side. Other market structures, including oligopoly andmonopolistic competition, might have more competition, but market control can also negate the law of supply.
Why might the Fed want to increase the money supply?
think about it, if the economy expanse, more money will be needed
How does the cost of production affect supplies?
Supply is the quantity of a good or service that a producer is willing and able to supply onto the market at a given price in a given time period.Cost business aim to maximise profit and reduce cost.Therefore an increase in production cost will result in a shift along the supply curve because the firm might not be able to supply as much at the same price. Resulting in a decrease in quantity supplied
What might a producer do while considering lost production that results from a trip to the market?
Increase the price of the products
Why might collusion be detrimental to consumers?
Collusion is the basis for forming a monopoly. That inhibits the free market or the laws of supply and demand.
Will more memory need a bigger power supply?
To add more memory cards you do not need a larger power supply. To add more hard drives for more memory storage space you might need to increase power supply.
Why might a business want to take over a competitor?
A business may want to take over a competitor in order to increase their market share. This involves taking the customers from their competitors, so if the sales of the business grow faster than total sales in the market, its share of the market will increase. A growing market share means that more customers will want to buy from a popular company and some retailers might be more prepared to stock products from this business.
What happens to the supply curve if the government regulations are increased or tightned?
If those regulations encompass higher transaction costs, then you might expect the supply curve to decrease, but it all depends on what kind of market we're talking about.
