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Suppose the price of land increases. At the same time, income increases. What would happen to the equilibrium price and quantity of housing? A、. Equilibrium price will decrease. We cannot predict what will happen to equilibrium quantity. B、.
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Market equilibrium is the ideal state achieved when supply and demand are balanced. Learn how market equilibrium can be calculated, even changing as economic factors shift, and the influences that it has on production and consumption. Related to this QuestionWhat is the ...
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Explain the income and substitution effects of a wage change in a labor market. Explain what effect a reduction in productivity has on wage-setting behavior, price-setting behavior, the equilibrium real wage, the natural rate of unemployment, and the natural level of output. ...
aa. Assume that Jim’s income is $90, the price of good X is $5 per unit, and the price of good Y is $10 per unit. What is Jim’s consumer equilibrium? Sketch the equilibrium point on an indifference curve graph. a. 假设,吉姆的收入是$90,好X的价格是$5每个单位,并且好Y的价格是...
So-called normal goods will exhibit this typical pattern. Inferior goods, on the other hand, may see their demand actually fall as income increases. An example of such an inferior good could be store-brand items: as people become wealthier they may opt instead for more expensive name brands,...
their arguments. The chart below illustrates a simplified macroeconomic equilibrium:aggregate demandandaggregate supplyintersect to determine overall output and price levels. In this example, the output may be the gross domestic product (GDP), and the price level may be theConsumer Price Index(CPI)....