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A decrease in the price of a complementary product B.
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∙ 11y ago
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An increase in supply will cause?
An increase in supply will cause a decrease in demand. The value of what is being supplied would also drop.
Why a producer would continue to increase output even though the marginal cost?
...of production may be rising? Answer: Because of increase in demand.
In which situation would the price of a good most likely increase?
A rise in demand happens to quickly for produces to increase production to keep up.
What would cause an increase in aggregate demand in the short run?
if decrease a price or if the expectation of raising a price
Is an increase in demand represented by a movement up the demand curve?
An increase in demand is represented by a shift of the demand curve to the right; not a movement along the demand curve. An increase in the quantity demanded would be a movement down the demand curve.
What would cause the overall demand for books to increase?
a fire
An increase in supply will cause?
An increase in supply will cause a decrease in demand. The value of what is being supplied would also drop.
Why a producer would continue to increase output even though the marginal cost?
...of production may be rising? Answer: Because of increase in demand.
How would a reduction in production cost look like on a supply-demand diagram?
Additional details to the question: What would be the result? increase in supply? decrease in demand? etc...
In which situation would the price of a good most likely increase?
A rise in demand happens to quickly for produces to increase production to keep up.
What would cause an increase in aggregate demand in the short run?
if decrease a price or if the expectation of raising a price
Is an increase in demand represented by a movement up the demand curve?
An increase in demand is represented by a shift of the demand curve to the right; not a movement along the demand curve. An increase in the quantity demanded would be a movement down the demand curve.
In what situations would the price of a good be most likely to decrease?
The development of a new energy source reduces production costs for a company.
What are the Importance of consumption and savings in economics?
Consumption/saving ratio tells us about the economic activity going on in the country.If consumption would increase this would mean that there is more production of output and economic activity is at boom.On the other hand if saving would increase there would be a decrease in the rate of interest which will further boost the economy.2.Rise in C/S ration would mean that there is more production due to more consumption so output would increase and DEMAND PULL INFLATION would also increase.3.Fall in C/S ratio would mean less production and unpredictable inflation.4.Really sorry for not drawing the aggregate demand-aggregate supply diagram to support my answer.Source(s):Self study
How would high oil prices cause inflation?
oil in general is used i production of goods and services.. oil as in petrol oil can be used in manufacturing products and if oil price is high, cost of production would be on the increase so this will result in the increase in the price of that product.
How would lack of product affect supply and demand?
A lack of product (a.k.a. a shortage) would primarily cause an increase in the price of the good or service. An increased price means more supply, but it also means less demand.
Hat if the Floating exchange rate system increased the US imports of Japanese good would this cause the demand schedule for Japanese yen to?
Increase
