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Why does an increase in autonomous taxes have the same effect on equilibrium output as does an decrease in autonomous transfers?
Wiki User
∙ 10y ago
taxes indirectly decrease Y, it does this by decreasing consumption
Wiki User
∙ 10y ago
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A decrease in input costs to firms in a market will result in?
a decrease in equilibrium price and an increase in equilibrium quantity
A decrease in supply will cause an?
increase in equilibrium price and a decrease in equilibrium quantity, which leads to a shortage at the original price.
What happens if demand and supply increase?
the price and value of the item will decrease.
An increase in supply reduces equilibrium price but increases equilibrium quantity a decrease in supply increases equilibrium prices but reduces equilibrium quantity. True or False?
True
If a company raises its price for holidays over the equilibrium price the demand will decrease the supply?
decrease and the supply will increase.
What is in the middle of decrease and increase?
equilibrium
A decrease in input costs to firms in a market will result in?
a decrease in equilibrium price and an increase in equilibrium quantity
A decrease in supply will cause an?
increase in equilibrium price and a decrease in equilibrium quantity, which leads to a shortage at the original price.
What happens if demand and supply increase?
the price and value of the item will decrease.
What happens to equilibrium price of a commodity if there is decrease in its demand and increase in its supply?
Equilibrium price increases
An increase in supply reduces equilibrium price but increases equilibrium quantity a decrease in supply increases equilibrium prices but reduces equilibrium quantity. True or False?
True
If a company raises its price for holidays over the equilibrium price the demand will decrease the supply?
decrease and the supply will increase.
How do you predict shifts in equilibrium?
If you increase the amount of a substance, the equilibrium shifts away, if you decrease or get rid of something the equilibrium shifts to it, and if the substance that is changed is on both sides then the equilibrium doesn't shift.
How do price changes drive markets toward equilibrium?
They increase or decrease supply or demand
How price adjustments eliminate a shortage?
The price will increase , Demand will decrease and Supply will increase until reach the equilibrium point
What happens to the equilibrium concentration of reactants when the volume of the reaction system is decreased and why?
decrease in reactants and increase in products
Write a short note on decrease in demand?
A decrease in the willingness and ability of buyers to purchase a good at the existing price, illustrated by a leftward shift of the demand curve. A decrease in demand is caused by a change in a demand determinant and results in a decrease in equilibrium quantity and a decrease in equilibrium price. A demand decrease is one of two demand shocks to the market. The other is a demand increase. A demand decrease results from a change in one of the demand determinants. The leftward shift of the demand curve disrupts the market equilibrium and creates a temporary surplus. The surplus is eliminated with a lower price. The comparative static analysis of the demand decrease is that equilibrium quantity decreases and equilibrium price decreases.
