What does perfectly inelastic supply signify? If a demand for a good is inelastic and inferior, what should its income elasticity of demand be? When the price of a good increases from $14 to $18, the quantity demanded of the good decreases from 800 to 700. What is the price elasticity ...
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 ...
When demand increases and supply remains constant, what happens to equilibrium price and quantity? A. Price increases, quantity decreases B. Price decreases, quantity decreases C. Price increases, quantity increases D. Price decreases, quantity remains const...
Section AUsing supply and demand analysis,explain what happens in the market for computers when following happensA.There is a rise in the price of software.B.There is an increase in the popularity of computers.C.Cheaper methods of producing computes are
Question: In the business cycle, when is deflation most likely to occur? a. as GDP rises b. during a recession c. during expansion d. with low unemployment Business Cycle: It is the different phases that are observed in the...
a. If we have demand for money curve and a supply of money curve and the Ms increases, what happens to the interest rate? Why? b. If the supply of money curve decreases what happens to the interest rate? The government of a country increases the growth rate of the money...
It is important to remember that the value of stocks is determined by market forces of supply and demand. When there is an imbalance between buyers and sellers during a crash, the market adjusts prices to reach equilibrium. This adjustment reflects the changing perceptions of investors regarding ...
When price falls, what happens? What happens when a nation?s currency depreciates? When prices rise, what happens to income? What happens with laissez-faire economic policies? What happens when supply increases and demand decreases? What happens when both supply and demand increase?
This constant interaction between supply (the willingness to sell) and demand (the willingness to buy) drives prices and market trends. When Demand in a Stock Increases Let's look at what happens when prices for a stock are going up, using one of the most notable stock rises in recent mem...
making the election allows for more favorable tax treatment on future gains, taxing appreciation at the lower capital gains rate rather than ordinary income. Additionally, individuals who make the 83(b) election may have the opportunity to deduct losses if the property's value decreases before vest...