Role of price in market economies
What is the role of price in market economies?
Expert
Prices play a very important role in market economies since they bring markets into equilibrium. When the price is distinct from its equilibrium level, the quantity supplied and quantity demanded are not equivalent. The resultant surplus or scarcity leads suppliers to adjust the price till equilibrium is restored. The prices therefore serve as signals which guide economic decisions and assign scarce resources.
What do you mean by the term Competitive market?
Illustrate whether output generated for self consumption is comprised or not comprised in the value of output? Answer: The output generated for self consumption is
Question: Compare and contrast 'adaptive expectations' (Hubbard uses adaptive expectations) and 'rational expectations' in modeling expectations. Answer:<
WHAT ARE THE STRENGTH AND WEAKNESS OF THE THEORY OF FOREIGN DIRECT INVESTMENT
Imports and American cars are much close however not perfect replacements. When the U.S. govt. tried to enhance American car sales by setting a price ceiling of P1 on imported cars: (i) The quantity of cars imported will drop/fall from Q0 to Q1. (ii)
what are the four supply factors of economic growth
I have a problem in economics on Paradox of Value-total utility and marginal utility. Please help me in the following question. Water is more precious than diamonds when measured by _____, however less valuable when measured by _____. (i) Total cost, total benefit. (i
How does an internally held public debt differ from an externally held public debt?
To begin with, let us recall our three-sector product-market equilibrium model given as C + I + G = C + S + TTo this three-sector model, we now add the foreign trade-the exports (X) and imports
18,76,764
1960445 Asked
3,689
Active Tutors
1422820
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!