--%>
Assignment Help - homework help

Larger amount is actually purchased at a higher price

Critically evaluate:  “In comparing the two equilibrium positions, it note that a larger amount is actually purchased at a higher price. This disprove the law of demand.”

E

Expert

Verified

The key point here is that the second equilibrium occurs after demand has increased, that is demand has shifted. Every equilibrium price describes a different demand situation.  Therefore, the fact that more is purchased at a higher price when demand increases does not refute the law of demand.  Note that on the second demand curve and schedule, more would still be purchased at a lower price.

   Related Questions in Business Economics

  • Q : Economic sense production methods

    Evaluate and explain the statements: “In the economic sense production methods are the most efficient methods, once resource prices are considered and are lesser in sense of engineering”.

    		•
  • Q : Producers on the best combinations of

    How did producers decide on the best combinations of resources to use?  Who made these resources available, and why?

    		•
  • 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 : Explain about Market Structures briefly

    Explain about Market Structures briefly.

    		•
  • Q : Illustrate several theories about

    Illustrate several theories about causation?

    		•
  • Q : What are the 4 phases of the business

    What are the 4 phases of the business cycle?

    		•
  • Q : Current Account captures international

    Question The Current Account captures international fund flows due to net income on (past) investments, net transfers, and i._______________________________, general

    		•
  • Q : How can we compute operating leverage

    How can we compute operating leverage?

    		•
  • Q : When productive resources are utilized

    While productive resources are utilized efficiently: (w) prices greatly exceed production costs for current outputs. (x) opportunity costs are at their minimums for all goods. (y) domestic production exceeds the value of foreign output. (z) the value

    		•
  • Q : Resource market for economic capital

    Janet has loaned a start-up coffee house $50,000 and predicts to earn interest from her financial investment. In circular flow model this transaction is an illustration of: (1) An exchange of her saving for interest, via a resource market for the economic capital. (2)

    		•