Answer:
Consider the following explanation.
Explanation:
According to the law of one price, identical goods
sold IN DIFFERENT LOCATIONS must sell for the same
price, except for costs associated with MOVEMENT BETWEEN LOCATIONS.
Those costs reflect TRADE BARRIERS and the cost of shipping.
According to the law of one price, if the price of a good
in one location does not match the price of the same good in
a different location, sellers will increase supply
in the location where the good is MORE EXPENSIVE
until prices in both locations are equal.
Answer:
wages and prices are often inflexible in the downward direction.
Explanation:
John Maynard Keynes was a British economist born on the 5th of June, 1883 in Cambridge, England. He was famous for his brilliant ideas on government economic policy and macroeconomics which is known as the Keynesian theory. He later died on the 23rd of April, 1946 in Sussex, England.
Keynes believed that wages and prices are often inflexible in the downward direction.
In Economics, when there are monetary disturbances and a great level of macroeconomic factors in the economy of a particular country, this usually result in prices of goods and services being sticky.
I think it is c I’m not sure
Answer:
b. would leave the market first if the price were any lower.
Explanation:
In the market, the producer always sells more than the economic cost ( raw materials and labor cost) that he bears during production. The marginal seller means that the seller earns zero economic profit ( producer surplus) i.e. an economic cost equals the selling price. So if the price falls then the marginal seller would leave the market first because he will be indifferent when earns the zero economic profit but when the price falls he would leave the market.
