How does a decrease in the price level affect the quantity of realGDP supplied in the long?-run? How does a price floor affect supply and demand? What happens when OPEC reduces the production of oil? What is the economic effect of price floors?
What happens when both supply and demand increase? What combination of changes would most likely decrease the equilibrium price? If the demand for a product declines, what happens to the price of the product? What is price effect in microeconomics?
As stated earlier, supply and demand diagrams refer to markets that are (at least approximately) perfectly competitive. So what happens when a non-competitive market has a price ceiling put on it? Let's begin by analyzing amonopolywith a price ceiling. The diagram on the left shows theprofit...
Using supply and demand analysis,explain what happens in the market for computers when following happens A.There is a rise in the price of software.The demand of computers will decrease with the rise in the price of software coz computer and software are 互补品(不知如何用英文),the price ...
Suppose that demand for a good increases and, at the same time, supply of the good decreases. What would happen in the market for the good? A. Equilibrium price would decrease, but the impact on equilib
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 happens to bonds when interest rates fall? When interest rates fall, bond prices typically rise, and there may be an opportunity to profit if an investor sells the bond before maturity. Let's assume an investor bought a bond with a 10-year maturity, a coupon rate paying 2%, and pur...
What happens to equilibrium price of a commodity if there is an increase in its demand and 'decrease' in its supply? View Solution What is decrease in demand and increase in demand? View Solution What is equilibrium price? What happens to the equilibrium price of a commodity, when its dem...
Ashort squeezeoccurs when short sellers scramble to replace their borrowed stock, thereby increasing demand, decreasing supply, and forcing prices up. Short squeezes tend to occur more often insmall-capstocks, which have a very smallfloat(supply).Large capsare certainly not immune to this situatio...
What Happens When the Fed Funds Rate Increases? When the federal funds rate increases, it increases the borrowing costs that banks pay to borrow from each other in order to meet their overnight reserve requirements if they have a shortfall in reserves. This increase in borrowing costs is passed...