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How does depreciation of a country's currency improve that country's competitiveness in foreign trade?
Depreciation lowers the price level ratio of the country to other countries, lowering exchange rates, and making it cheaper for foreigners to buy the country's goods, increasing exports. Thus, depreciation artificially lowers the cost of all goods produced by a country, making them more competitive.
What is the subtitution effect of a price change?
Say there are two goods..x and y, which can be substituted with each other..now if the price of good x increases..the consumer will buy less of good x and more of goods y. Since goods x and y are substitute goods..so change in price of goods x will change the demand of good y..so price effect of substitute goods is positive.
What affect will reducing trade barriers between countries have on the price of goods?
the effect reducing trade barriers between countries have on the price of goods are types of names
When a reduction in the price of a good allows a consumer to purchase more of all goods this effect is called the?
Substitution effect
What are the difference between giffen good and inferior good with 3 examples?
All Giffen goods are inferior goods. But not all inferior goods are Giffen goods. For inferior goods, the negative substitution effect will more than offset the positive income effect, so that total price effect will be negative. For Giffen goods, the positive income is positive and very strong that the law of demand does not hold. Price elasticity of Giffen good is positive. Inferior Goods: Cheap goods Giffen Goods: Rice, wheat, noodles are Giffen goods in China
What effect did the assembly line have on the cost of goods?
It lowered the price of goods.
How does depreciation of a country's currency improve that country's competitiveness in foreign trade?
Depreciation lowers the price level ratio of the country to other countries, lowering exchange rates, and making it cheaper for foreigners to buy the country's goods, increasing exports. Thus, depreciation artificially lowers the cost of all goods produced by a country, making them more competitive.
What is the subtitution effect of a price change?
Say there are two goods..x and y, which can be substituted with each other..now if the price of good x increases..the consumer will buy less of good x and more of goods y. Since goods x and y are substitute goods..so change in price of goods x will change the demand of good y..so price effect of substitute goods is positive.
What affect will reducing trade barriers between countries have on the price of goods?
the effect reducing trade barriers between countries have on the price of goods are types of names
When a reduction in the price of a good allows a consumer to purchase more of all goods this effect is called the?
Substitution effect
Highest stock price appreciation in one day?
the highest stock price appreciation in one day?
What is the effect of an import tariff charged on particular goods?
The price paid by consumers is increased.
What is the effect of mass-production on the price of goods?
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What are the difference between giffen good and inferior good with 3 examples?
All Giffen goods are inferior goods. But not all inferior goods are Giffen goods. For inferior goods, the negative substitution effect will more than offset the positive income effect, so that total price effect will be negative. For Giffen goods, the positive income is positive and very strong that the law of demand does not hold. Price elasticity of Giffen good is positive. Inferior Goods: Cheap goods Giffen Goods: Rice, wheat, noodles are Giffen goods in China
How would mass production effect the price of goods?
It would make the value of the item decrease.
Definition of share capital?
The amount of share capital a company reports on its balance sheet only accounts for the initial amount for which the original shareholders purchased the shares from the issuing company. Any price differences arising from price appreciation/depreciation as a result of transactions in the secondary market are not included.
How do tsunamis affect the economic status of the countries they strike?
They effect the price of many goods. Say there is a tsunami in a country or area that pproduces many goods. Take Japan, the price of electronics has gone up. So yea tsunamis effect the econmic tatus of countries.
