6.2 How changes in income and prices affect consumption choices  (Page 7/11)

 Page 7 / 11
• Card 7 / 11:
Explain all the reasons why a decrease in the price of a product would lead to an increase in purchases of the product.

This is the opposite of the example explained in the text. A decrease in price has a substitution effect and an income effect. The substitution effect says that because the product is cheaper relative to other things the consumer purchases, he or she will tend to buy more of the product (and less of the other things). The income effect says that after the price decline, the consumer could purchase the same goods as before, and still have money left over to purchase more. For both reasons, a decrease in price causes an increase in quantity demanded.

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What is a monopsony?
monopsony is a situation where only one buyer is available in the market
The
And with many sellers?
Allan
oligopsony
The
to be more specific, oligopsony is a situation with many sellers but few buyers
The
Thank you
Allan
economic is tha process of banking
Pls can u explain it into details
Praise
Cause I don't understand what you are saying
Praise
brownies price is 5\$ quantity demand is 5000\$ supplied is 3000 if brownies are not taxed how many are consumed?
what is unemployment
ok so what would u say is supply in your own terms
Ok
fedaa
ya
Lal
why the demand curve is downwards sloping and supply upward sloping
the dd curve is downward sloping because consumers dd less when price is high and vice versa the ss curve is upward sloping suppliers are willing to produce more when prices are high
Clifford
jeremy
when the prices of supplies slop upward then the prices of demand curve will increases downward
Kerubino
Why scarsity is considered to be very important in the study of economics
How can you solve the problem of scarcity
Sesay
If there is a enough quantitative the problem of scarcity would be solved.
Kerubino
what is demand
Demand refers to the quantities of a commodity which consumers are willing and are able to buy at given prices.
Okonji
demand is the number units of goods or services that buyers are willing and able to buy at verous prices
what is a full form of GDPCP?
if the price of a commodity is at 6\$, is the magnitude of the excess supply
The quantity supplied at a price above or higher than \$6 would be the excess supply
Elisha
2003, and \$12,700 in Korea. Assume the growth rates for each country remain the same. 1. Compute the doubling time for
busywork
6\$ the quantity remained the same
Sekou
write shirt note of the following terms normal goods
what is normal goods
what is a full form of GDPCP?
evaluate measures to remove the deflationary gap?
State four importance of economics
1) Economics help us to know how gouvernement,society, individuals and house holds allocate scarce resources 2)Economics help give us valable knowldge on daily decisions 3)Economics also help us to better understand economy 4)Economics help us better our daily life
Blessing
thank you dr
BLESSED
what is scarcity?
what is economics
MCclean
why is economics not consider as pure science?
Stanly
Economics is defined as science that studies human behaviour as a relation between ends and scarce means
School
Economics is not considered as pure science because it only deals with currency and human behaviour...
School
Scarcity refers to a limited supply of goods and services
School
What is Stock exchange?
An exchange where security trading is conducted by professional stockbrokers
Bnysn
A place where scurity trading is conducted on an organised system
Blessing