How consumption influence the equilibrium price
How does rise in price of a substitute good in consumption influence the equilibrium price?
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Answer: With the increase in price of the substitute good, the equilibrium price of concerned good will rise owing to shift in demand curve to the right.
State excess demand or inflationary gap: Excess demand takes place whenever AD is bigger than AS at the level of full employment equilibrium.
Technological advance in producing both capital goods and consumer goods is illustrated by the shift of the production possibilities curve from AB to: 1) CD. 2) EB. 3) AF. 4) GH. Q : Cost conditions and market demand curve The fact that a firm along with market power adjusts output depending upon both cost conditions and the features of the market demand curve means that: (w) the amount which a monopolist produces tends to be more volatile than the outp
The fact that a firm along with market power adjusts output depending upon both cost conditions and the features of the market demand curve means that: (w) the amount which a monopolist produces tends to be more volatile than the outp
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Brian, a poor college student, eats pinto beans or Ramen Noodles for dinner every night. After the graduation, he takes a job with a beginning salary of $50,000 per year. This modification in income is most probable to: (1) Decrease his consumption of both the product
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I have a problem in economics on equilibrium market price. Please help me in the following question. The equilibrium market price subsists only if: (1) Quantity demanded equivalents the quantity supplied. (2) Surpluses exceed the shortages. (3) Expert
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