Explain why the market price may not be the same as the equilibrium price. Explain why the technological change does not mean that the cost curve is downward sloping. Why would a consumer's utility increase when the price falls? Explain why firms decrease supply in a market wheneve...
It stands in contrast from inflation, which refers to when prices rise. It can be driven by many different factors, including an increase in productivity and the abundance of goods and services; a decrease in total or aggregate demand; or a decrease in the supply of money and credit. ...
Why is it that producers are willing to supply more of a good when the price increases? Why marginal cost increases or decreases with increase or decrease in production levels? Why does the price rise as more and more quantity of a good is supplied?
A flexible model of supply chain management ensures that production can easily be ramped up or wound down. Efficient Model Companies competing in industries with very tight profit margins may strive to get an advantage by making their supply chain management process the most efficient. That could...
Suppose everything else is set, when price level increases (either anticipated or unanticipated), money demand increases, then supply of loanable funds decreases, which drives up real interest rate. But why some articles also say that pri...
. However, the PCE price index is calculated by a separate federal agency called the Bureau of Economic Analysis. The BEA uses a different formula to calculate inflation (and deflation, when prices decrease) and weighs categories of goods and services differently[0] U.S. Bureau of Labor ...
“In terms of value, Champagne is really stable, which is due to price increases, as well as more value in the country mix and the market mix,” he concluded. Or, in the words of Champagne Taittinger president Vitalie Taittinger, “Our policy is to develop Champagne through value and exc...
One good indicator is the oil price; the low oil prices have affected so many different industries that you will be very hard-pressed to see the market increase anytime soon. Until the oil prices level out, the overseas market needs an increased supply because of shortages of raw materials,...
Why is it that producers are willing to supply more of a good when the price increases? Why is it profitable for companies to engage in price discrimination? How do companies maintain stable revenue during a recession? Why won't a perfectly competitive firm earn economic profits in the long ...
Explain why prices of risky bonds may decline when economic conditions weaken. Explain why interest rates effect the per annum yield of the forward versus the spot exchange price. Why does increasing money supply result in a short-term decrease in nomina...