Briefly discuss the determinants of demand other than price
What will be an ideal response?
An increase in income causes demand of a normal good to increase and demand of an inferior good to decrease. An increase in the price of a related good causes demand to increase if the two goods are substitutes and causes demand to decrease if the two goods are complements. An increase in population causes demand to increase. Demand increases if consumers develop more of a preference for the good. Expectations about the future also matter. If consumers think the price will increase in the future, current demand increases.
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Refer to Scenario 12.2. Suppose that the marginal cost falls such that:
MC = Q - 10 What is the profit maximizing level of output? A) 171.43 B) 120 C) 150 D) all of the above E) none of the above
When the dollar depreciates, the prices of imported inputs rise, and the U.S. aggregate supply curve, therefore, shifts inward, pushing up the prices of American-made goods and services.
Answer the following statement true (T) or false (F)
Demand factor:
What will be an ideal response?
Refer to the given data. This firm is selling its product in:
A. an imperfectly competitive market at prices that decline as sales increase.
B. a purely competitive market at $3 per unit.
C. a purely competitive market at $2 per unit.
D. an imperfectly competitive market at $3 per unit.