What is Complements
Complements: The two goods for which a rise in the price of one good leads to a reduction in the demand for other.
Imports and American cars are close nevertheless not ideal substitutes. When the U.S. government tried to boost American car sales through setting a price ceiling of P1 upon imported cars in that case: (w) the quantity of cars imported will
Explain the methodological procedure called comparative statics. What does this procedure imply regarding the nature of the consumer demand curve?
Describe why the equilibrium price of commodity is determined at the level of output at which its demand equavalents its supply.
Demand curves graphically depict the relationships which are: (i) Positive among the demand for a good and its relative price. (ii) Negative between the quantity demanded and the opportunity cost of a good. (iii) Positive between income and expenditures. (iv) A horizo
A firm’s wage elasticity of demand for labor is least influenced by: (1) how much time the firm has to adjust to changing wages. (2) the proportion of labor’s share of the total costs. (3) the ease of substitution in between capital
In economics, what is ordinal utility and what are its assumptions
Can someone help me in finding out the right answer from the given options. The Minimum wage laws are most probable to increase the equilibrium employment when a firm has been exercising: (1) Monopoly power and price discrimination. (2) Employee choice in markets for
When economies of scale in producing a product persist across the complete range of market demand as: (w) pure competition is the most efficient market structure. (x) competition will prevent monopolization of the industry. (y) compet
Price Rigidity: The other significant feature of oligopoly is price rigidity. Price is rigid or sticky at the prevailing level due to the fear of reaction from the rival firms. When an oligo
A 2 percent price cut for doodads causes gizmo sales to fall by 3 percent. The price cross elasticity of demand among these goods is approximately _____ and such goods are _____. (w) 2/3, substitutes. (x) 1.5, substitutes. (y) 2/3, complements.
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