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Inelastic demand curve?
Inelastic demand means a situation in which the demand for a product does not increase or decrease correspondingly with a fall or rise in its price. From the supplier's viewpoint, this is a highly desirable situation because price and total revenue are directly related; an increase in price increases total revenue despite a fall in the quantity demanded. An example of a product with inelastic demand is gasoline. Refer to link below.
What describes a situation in which a price of a good would rise?
Demand goes up or supply goes down. - Producers cannot make enough of a good when that good becomes popular. - The raw materials or production capability for a good is unexpectedly reduced.
Why does demand fall?
Demand drops when the price of the demanded good rise.But also demand of a certain good may drop when the price of substitute fall
How is current demand related to the future price of a good?
If the price is expected to drop, current demand will fall.
In which situation with the price of a good be most likely to decrease?
The price of a good can decrease if supply is greater than demand. The price can also decrease if that item has been superseded by a newer version.
What describes a situation in which the price of a good would fall?
the community is crazy
Inelastic demand curve?
Inelastic demand means a situation in which the demand for a product does not increase or decrease correspondingly with a fall or rise in its price. From the supplier's viewpoint, this is a highly desirable situation because price and total revenue are directly related; an increase in price increases total revenue despite a fall in the quantity demanded. An example of a product with inelastic demand is gasoline. Refer to link below.
What describes a situation which the price of a good would rise?
A new technology allows producers to increase supply very quickly
What describes a situation in which a price of a good would rise?
Demand goes up or supply goes down. - Producers cannot make enough of a good when that good becomes popular. - The raw materials or production capability for a good is unexpectedly reduced.
Why does demand fall?
Demand drops when the price of the demanded good rise.But also demand of a certain good may drop when the price of substitute fall
How is the current demand for a good related to is future price?
If the price is expected to drop, current demand will fall.
How is current demand related to the future price of a good?
If the price is expected to drop, current demand will fall.
How is the current demand for a good related to its future prices?
If the price is expected to drop, current demand will fall.
In which situation with the price of a good be most likely to decrease?
The price of a good can decrease if supply is greater than demand. The price can also decrease if that item has been superseded by a newer version.
What describes the substitution effect?
As the price of a good rises, people will substitute other products.
Price of substitutes and complements vs price of commodities?
Relationship of good price to price of substitutes and complements: 1) Substitutes: as the price of substitutes for a good falls, the price of a good must fall in order to maintain demand. 2) Complements: as the price of complements falls, the price of a good can increase and still maintain the same level of demand.
Which of the following describes a situation in which a shortage occurs?
A shortage occurs when the quantity demanded for a good or service exceeds the quantity supplied at a given price, leading to a situation where not all consumers are able to purchase the product they desire. This can result in price increases as sellers try to balance the demand and supply.
