Why the slope budget line downward
Describe why is the budget line slope downward?
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Since with given money income when a consumer purchases more of one good, he has to buy less of another goods.
Relative to firms which are price takers in both the product markets and labor markets, firms through market power in both the product markets and labor markets tend to. (1) Hire fewer workers and pay them less. (2) Rely more heavily on the screening and signaling thr
Propensity to consume: This exhibits the level of consumption at various levels of income in the economy.
Assume that a student takes out a college loan which needs 12% annual interest, however later learns that his aunt makes loans to the family members at 5% interest. The student has suffered from the problem termed as: (1) Rational ignorance. (2) Blind indifference. (3
Since longer time periods are considered and a bigger range of adjustments (or substitutions) become accessible, demand curves tend to become: (i) Flatter, whereas supply curves become steeper. (ii) Steeper whereas supply curves become flatter. (iii) Flatter, and ther
The supply and demand are affected by the time in sense that the longer the time interval considered, the: (1) Less sensitive sellers and buyers are to price changes. (2) Much sensitive sellers and buyers are to price changes. (3) Bigger is supply and
For economists, the term "utility" signifies: 1) versatility and flexibility 2) rationality 3) pleasure and satisfaction 4) purposefulness.
The Restrictive work rules which need firms to employ more workers than essential are termed as: (i) Feather-bedding. (ii) Seniority contracts. (iii) Blacklisting regulations. (iv) Agency shop provisions. (v) Yellow dog contracts.
This graph depicts a short run situation while long run equilibrium has been achieved for a firm along with some market (price-making) power when the firm cannot price discriminate and: (w) has explicit costs but no i
A huge firm which slashes prices to drive smaller competitors out of business, and after that raises prices due to its enhanced market power is pursuing a strategy of: (1) predatory pricing. (2) cut-throat competition. (3) price discrimination. (4) ma
In which form of market, the demand curve is more elastic and why? Answer: Demand curve is more elastic under monopolistic since of the availability of close substitute.
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