Changes in price influencing supply
Describe how changes in the prices of other products influence the supply of a specific product.
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The supply of good is inversly influenced with the change in price of another product which can illustrate as follows:
1) Rise in price of other product:? Whenever there is rise in the price of other product the production of such product become much profitable due to unchanged cost in comparison with the production of specific product. As an outcome the producer will generate more quantity of other product therefore the supply of given good will reduce.2) Fall or Down in the price of other product:? Whenever there is fall in the price of other product the production of such product become less gainful due to unchanged cost in comparison with the production of specific product. As an outcome producer will generate less quantity of other product, therefore the factors of production shifted for the production of specific good. It cause a rise in the supply of given good.
Moving from point d to point e beside demand curve D, the price elasticity of demands of DVDs of video games at equal: (a) 0.8. (b) one. (c) 1.10. (d) 1.25. (e) 2.50 Q : Determine price elasticity of perfectly A city government trying to pass an excise tax for that the economic burden would be borne strictly through the seller will succeed when this imposes a tax on a good for that the price elasticity of: (i) demand is unitarily elastic. (
A city government trying to pass an excise tax for that the economic burden would be borne strictly through the seller will succeed when this imposes a tax on a good for that the price elasticity of: (i) demand is unitarily elastic. (
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is the price in the law of demand an absolute price or a relative price
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