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How would it be possible to observe a decrease in both the equilibrium price and quantity in the market at the same time?
A fall in demand will result in the decrease of both equilibrium price and quantity. A fall in demand( a leftward shift in the demand curve) will result in the decrease of both equilibrium price and quantity.
Suppose that the incomes of buyers in a particular market for a normal good decline and there is also a reduction in input prices What would you expect to occur in this market?
The equilibrium price would decrease, but the impact on the amount sold in the market would be ambiguous.
What effect does a decrease in demand have on equilibrium price?
Imagine the curves. A decrease in demand would lower the equilibrium price by moving the demand curve to the left, dragging the intersection point down.
What would the equilibrium price and quantity be in a oligopoly market?
In an oligopoly market, the equilibrium price and quantity are determined by the interdependent pricing and output decisions of a few dominant firms. These firms often engage in strategic behavior, such as price collusion or price wars, which can lead to higher prices and lower quantities compared to a competitive market. The equilibrium is reached when firms balance their production levels with market demand while considering their competitors' actions. As a result, the equilibrium price may be higher and the quantity lower than in more competitive market structures.
Why price ceiling and price floor is binding?
A price ceiling is binding when it is below the equilibrium price. It is the legal maximum price, so the market wants to reach equilibrium (which is above that) but can't legally. If it were above the equilibrium price it would not be binding because the market would reach equilibrium and the ceiling would have no effect. A price floor is binding when it is above the equilibrium price. You can use similar reasoning to that above. It is the legal minimum price. the market wants to reach equilibrium below that but can't legally.
How would it be possible to observe a decrease in both the equilibrium price and quantity in the market at the same time?
A fall in demand will result in the decrease of both equilibrium price and quantity. A fall in demand( a leftward shift in the demand curve) will result in the decrease of both equilibrium price and quantity.
Suppose that the incomes of buyers in a particular market for a normal good decline and there is also a reduction in input prices What would you expect to occur in this market?
The equilibrium price would decrease, but the impact on the amount sold in the market would be ambiguous.
What effect does a decrease in demand have on equilibrium price?
Imagine the curves. A decrease in demand would lower the equilibrium price by moving the demand curve to the left, dragging the intersection point down.
What would the equilibrium price and quantity be in a oligopoly market?
In an oligopoly market, the equilibrium price and quantity are determined by the interdependent pricing and output decisions of a few dominant firms. These firms often engage in strategic behavior, such as price collusion or price wars, which can lead to higher prices and lower quantities compared to a competitive market. The equilibrium is reached when firms balance their production levels with market demand while considering their competitors' actions. As a result, the equilibrium price may be higher and the quantity lower than in more competitive market structures.
Why price ceiling and price floor is binding?
A price ceiling is binding when it is below the equilibrium price. It is the legal maximum price, so the market wants to reach equilibrium (which is above that) but can't legally. If it were above the equilibrium price it would not be binding because the market would reach equilibrium and the ceiling would have no effect. A price floor is binding when it is above the equilibrium price. You can use similar reasoning to that above. It is the legal minimum price. the market wants to reach equilibrium below that but can't legally.
Would result in a decrease in entropy?
water freezing
What happens on equilibrium price when the government impose tax on goods?
if there is equilibrium in the market and the govt. fixes the price then there would be the dead weight loss.
What would happen if NO were added to N2g O2 g 2NO g at equilibrium?
Adding NO to the system at equilibrium would increase the concentration of the NO product. According to Le Chatelier's principle, the system will counteract this change by producing more of the reactants, N2 and O2.
Explain the process that drives the economic profit to zero in the long run for a perfectly competitive firm?
In perfectly competitive markets, economic profits are zero in the long run because firms are able to enter and exit the market. If firms in a perfectly competitive market are profitable, there would be an incentive for new firms to enter. Supply would increase, causing an increase in quantity and the price to be driven back down to equilibrium: NO PROFIT! If firms in a perfectly competitive market are suffering a loss, some firms would choose to exit the market. Supply would decrease, causing a decrease in quantity and the price to be driven back up to equilibrium: NO PROFIT!
What the would result in a decrease in entropy?
The meaning is more order.
How would pressure in the glomerulus be affected by constricting the afferent arteriole?
Constricting the afferent arteriole would decrease blood flow into the glomerulus, leading to a decrease in pressure within the glomerulus. This may result in a decrease in glomerular filtration rate and a reduction in the formation of urine.
What effect would a decrease in production costs for all firms have on the aggregate supply curve?
the curve would shift to the right
