In general, as price increases, demand decrease? True or False.
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This Post Has 6 Comments
False, the reason the prices raise is because of high demand. If people want a product they will buy it at a higher price.
As demand rises, the price of the product decreases
As demand decreases, costs generally increase
The average rate of change describes how much a quantity changes as price increases.
As we know that
The price and the supply has a direct relationship between each other according to the law of supply that means if the price of the product increases the supply of the product is also increases and vice versa
And, the price and the demand had an inverse relationship between each other according to the law demand that means if the price of the product increases the demand of the product is decreased and vice versa
Plus if there is an increase in prices so how much quantity changes are computed by considering the average rate of change
Therefore, these above three statements are true.
These are the following answers:
(1) The good becomes more expensive to produce
(2) It lowers cost and increases supply.
(3) to offset the air pollution caused by automobiles.
(4) It shifts to the left.
(5) If the price is expected to increase and then decrease, most sellers will hold onto their supply until the decrease has occurred.
(6) Fewer goods are bought.
(7) When goods are bought together, increased demand for one will decrease demand for the other.
(8) Demand for a good can be elastic at a low price but inelastic at a high price
(9) The lower the price, the larger the quantity produced
(10) marginal cost plus fixed cost fixed cost plus variable cost
The good becomes more expensive to produce.It lowers cost and increases supply.To offset the air pollution caused by automobilesIt shifts to the right.If the price is expected to increase, many producers will hold onto their supply.Fewer goods are bought.If goods are used together, increased demand for one will increase demand for the other.Price range has little or no effect on elasticity of demand for a good.The higher the price, the larger the quantity produced.fixed cost plus variable cost
1. What effect does a rise in the cost of machinery or raw materials have on the cost of a good?
The good becomes more expensive to produce. A raw material is a standard or basic material that a good is produced from. A raw material can be wood from a tree, water, meat, minerals, and fuels. If the cost of machinery rises, it is more expensive to retrieve the raw materials and so it increases the cost of the good.
2. What does new technology generally do to production?
It lowers cost and increases supply. Typically when a company or individual develops a new type of technology, they are able to cut the cost of production down because newer technology leads to more advanced and productive inter-workings. When there is new technology production can happen quicker which leads to an increase in the supply of products being produced.
3. Why does the United States regulate automobile manufacturing in so many ways?
To offset the air pollution caused by automobiles. Though cars are needed for transportation and are extremely important for everyday life in the United States, they are extremely toxic and toxic to produce. Having regulations on automobile manufacturing helps to product the air we breath and the Earth.
4. When any effort by government causes the supply of a good to rise, what happens to the supply curve for that good?
It shifts to the right. The supply curve is a graph within economics that shows the relationship a good or service has with the price and quantity demanded of the supply. The product price is shown on the vertical axis on the graph and the quantity supplied is on the horizontal axis. When the government causes the supply of a good to rise, the curve will cause a shift to the right.
5. How do future expectations about the price of a good affect the present supply?
If the price is expected to increase, many producers will hold onto their supply. If there are expectations of a good to rise, some producers will hold onto their supply so that they can sell it off at a higher price. Likewise, if it is looking like a price may fall, a producer will try and get it sold before the increase causes an affect on them.
6. If prices rise and income stays the same, what is the effect on demand?
Fewer goods are bought. If the price of an item rises but someones wage does not rise, they will likely purchase less of that item. They will have less money to spend on things so the effect on demand would show a decline.
7. How can the demand for one good be affected by increased demand for another one?
If goods are used together, increased demand for one will increase demand for the other. Demand is relative to the price and need for an item, if an item is needed the demand will rise. Gas and a car are examples of two goods that can be affected based off demand. If the demand for a car rises, there is usually an increase in the demand for gas.
8. How does the price range affect the elasticity of demand for a product?
Demand for a good can be inelastic at a low price, but elastic at a high price. Elasticity of demand is a measurement used to show how responsive the quantity of a good or service is demanded when nothing besides the price of the good changes.
9. What is the principle of the law of supply?
The higher the price, the larger the quantity produced. The law of supply is a fundamental principle in economics. This principle states that if nothing changes but the price rising there is an increase in quantity supplied. Basically, there is an equal relationship between the price and quantity of a good or service.
10. How is the total cost of a factory or other production site determined?
Fixed cost plus variable cost. When figuring out the total cost of a factory or product a company has to take into account their fixed costs of each month to run the building and then plan for variable costs that will be changing each month.
Statements 1,3 and 4 are correct
We want to select the three correct statements as related to demand and supply.
Statement 1 is correct
An increased supply would lead to saturation of the market with the product for normal goods. The saturation of the market will surely make the price of the goods in the market decrease
Statement 2 is incorrect
A decrease in demand should drive down the prices of commodities for normal goods
Statement 3 is correct
A decrease in supply means there are less goods in the market. This makes consumers want to fight more to get their share in the market which thus forces up price of these goods
Statement 4 is correct
An increase in demand would make suppliers increase the price they place on their commodities.