--%>

How will the system accommodate change

How will the system accommodate change?

E

Expert

Verified

In consumer tastes and the guiding function of prices accommodating changes are:-

a. An increase in demand for some products will lead to higher prices in those markets.

b. A decrease in demand for other products will lead to lower prices in those markets.

c. Increased demand leads to higher prices that induce greater quantities of output.  The opposite is true for a decrease in demand.

d. Higher prices lead to more profits and new firms entering the market.

e. Lower prices lead to losses and firms leaving the industry.

   Related Questions in Business Economics

  • Q : Our junior high school serves a

    Comment on the following statement from a newspaper article:  “Our junior high school serves a splendid hot meal for $1 without costing the taxpayers anything, thanks in part to a government subsidy.”

  • Q : Describe the types of multiplant firms

    Describe the types of multiplant firms?

  • Q : Distinguish clearly between a plant

    Distinguish clearly between a plant, a firm, and an industry?

  • Q : High-convexity portfolios outperform

    An important drawback of "traditional yield spread analysis" is the "failure to take into account future interest rate volatility that would affect the expected cash flow" of a fixed income security. How does option adjusted spread analysis correct for the "failure" of traditional yield spread analy

  • Q : Theory of Purchasing Power Parity

    Question: The Theory of Purchasing Power Parity says that, in the long run, nominal exchange rates change to offset changes in relative i. _________________________ so that the purchasing power of two currencies st

  • Q : Determine opportunity cost of making an

    The opportunity cost of making an exact alternative is: (i) useful primarily as an indicator of relative prices. (ii) its nominal costs into terms of all other goods. (iii) the information which guides your decision. (iv) measured through the subjecti

  • Q : Introduction of the term combined

    Give a brief introduction of the term combined leverage? And in what manner it is calculated?

  • Q : Exchange is the necessary consequence

    Explain: “Exchange is the necessary consequence of specialization.”

  • Q : Firms operating under Cournot

    Question: Suppose three identical firms are engaged in Cournot competition in quantities. They all have marginal costs equal to 40. Market demand is given by:

    Q : What are the determinants of supply

    What are the determinants of supply?