What happens when the price of a good increases?Question:What happens when the price of a good increases?Prices:Prices, in a free market, reflect and are determined by the points at which the supply of goods and the demand for goods intersect. Consumers seek to maximize the use of their ...
a. What happens when volatility increases? b. What does the volatility percentage mean? Market Risk The market risk associated with trading in the stock market means the possibility of the occurrence of casualties in the market. A fall in the working of any particular ind...
When interest rates are low, bond prices are high. Because low-interest rates cause higher bond prices and result in a lower return on investment, the demand for bonds is lower. However, the supply of bonds increases as bond prices increase and interest rates decrease. What Causes Shift in ...
Current bond yields are calculated by dividing the annual interest payment by the bond's current price (current yield = annual coupon ÷ bond price). So, when the bond price drops, its yield increases, making it competitive against newer bonds paying higher rates. In short, bond prices and ...
What will be the affect on nominal interest rate in short run if Real GDP increases, if money supply increases, if price level rises? What happens to interest rates when the economy recovers from a recession? What happens to interest rates during a period of recession? When the...
Answer to: Harvard university indicates that eating chocolate is good for human health. What happen to the price of chocolates and the demand of...
equilibrium quantity decreasesb)equilibrium price increases, equilibrium quantity increasesc)equilibrium price decreases, equilibrium quantity decreasesd)equilibrium price decreases, equilibrium quantity increases what happens to equilibrium price and quantity...
Housing Supply and Demand Changes During a recession, the number ofhomebuyerslooking for new and used houses will decline, which will reduce the bidding wars, as peoples’ fear of losing their jobs increases, and rising mortgage rates make houses less affordable. ...
By this same theory, when interest rates drop, consumers and companies are able to borrow and spend money more freely, which drives up demand for oil. The greater the usage of oil, the more consumers bid up the price. Another economic theory proposes that rising or high-interest rates hel...
Demand-pull and cost-pushinflation move in practically the same way but they work on different aspects of the system. Demand-pull inflation demonstrates the causes of price increases. Cost-push inflation shows how inflation, once it begins, is difficult to stop. ...