--%>

Illustrate Other Things Equal revisited in Supply

Illustrate “Other Things Equal” Revisited in Supply and Demand, and Equilibrium?

E

Expert

Verified

Remember that the “laws” of supply and demand depend on the assumption that the “other things” or “determinants” of demand and supply are constant. Confusion results if “other things” (determinants) change and one does not take this into account.  For example, sometimes more is demanded at higher prices because incomes rise, but if that fact is ignored, the law of demand seems to be violated.  If income changes, however, there is a shift or increase in demand that could cause more to be purchased at a higher price. In this example not remain constant is “other things”.

   Related Questions in Business Economics

  • Q : Determine the productively efficiency

    To be productively efficient, a country should: (w) maximize the satisfaction attainable from its budget. (x) be concerned only with macroeconomic analysis. (y) concentrate on removing scarcity. (z) maximize the value of output produced through specif

  • Q : Define explicit cost and implicit cost

    Briefly describe the term explicit cost and implicit cost?

  • Q : Price competition My friend can't

    My friend can't succeed to get the answer of this question. Give me solution of this question. From a heterodox perspective, why does destructive price competition drive enterprises to set up market institutions which would abolish price competition?

  • Q : Type of expenditure at the local level

    What is the most important source of revenue and the major type of expenditure at the local level?

  • Q : Assertion to increase in the minimum

    Use the circular flow model to confirm this assertion for a $1 per hour increase in the minimum wage?

  • Q : Who is a normal resident Normal

    Normal resident: The persons or an institution who lives in a country and whose centre of interest lies in that country is termed as a normal resident of that country.

  • Q : Explain the shapes of the

    Specify and explain the shapes of the marginal-benefit and marginal-cost curves and use these curves to determine the optimal allocation of resources to a particular product.  If current output is such that marginal cost exceeds marginal benefit, should more or l

  • Q : Introduction of the term Cost of equity

    Give a brief introduction of the term Cost of equity shares?

  • Q : Higher opportunity costs of attendance

    Economics professors would attribute students’ higher rates of attendance on days while examinations are administered to the: (w) intensified needs to learn valuable material. (x) higher opportunity costs of missing set relative to other schedul

  • Q : Key model of price-specie flow mechanism

    The key model underpinning David Hume’s price-specie flow mechanism which most mercantilists failed to grasp is termed today as: (i) the equimarginal principle. (ii) the wages-fund doctrine. (iii) the quantity theory of money. (iv) partial equil