Income effect - This is the increase or decrease in purchasing power brought on by changes in prices.
substitution effect-This refers to how people may buy a lower-priced product rather than a more expensiv product. This effect may change the demand for a good or service.
If the quantity supplied by producers is relatively insensitive to price changes, supply is price inelastic.
Inelastic demand is demand for which the change in quantity demanded is small due to changes in price. Demand is elastic if the formula yields an absolute value greater than 1. In other words, quantity changes faster than price. If the value is less than 1, demand is inelastic.
For example, consumers are less price relatively insensitive if the product or service is unique or has few alternatives. Consumers are less price sensitive when total costs are low relative to total revenues. The total effort compared to the total cost of the final product also influences price sensitivity.
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<em>Your question is incomplete. please read below to find the full content.</em>
If the quantity supplied by producers is relatively insensitive to price changes, supply is ______. Multiple choice question.
price inelastic.
quantity demanded.
relative price increase.
change in price.
Answer:
The answer is $80,000
Explanation:
The formula for straight-line depreciation is:
[Cost of asset - salvage value(if any)] ÷ useful life of the asset
Depreciation = $4,000
Cost of asset= ? (represented by y)
Useful life of the asset = 20 years
$4,000 = y ÷ 20 years
y is $4,000 x 20 years
y = $80,000
Therefore, the initial cost of the asset was $80,000
The answer you are looking for is a planned economy
For each of the following goods that are imported in the United States, abundant input is the only source of comparative advantages that accounts for that country's comparative advantage. Therefore, the option A holds true.
<h3>What is the significance of a comparative advantage?</h3>
A comparative advantage can be referred to or considered as a situation in which a producer has an economic advantage over the other in a number of economic activities. At least two economies need to be a part of the society for the occurrence of a comparative advantage.
Abundant inputs is one of the key sources of comparative advantage. It is considered as a source that can account for another country's comparative advantage, when it lets the United States import its goods.
Therefore, the significance regarding comparative advantage has been aforementioned.
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