Elaborate on your answer to the previous question by using demand curves. For which good does demand change and for which good does the quantity demanded change?

What will be an ideal response?

After the price of a good falls, the consumer increases consumption of the good to lower the marginal utility per dollar. This action means that more of the good is consumed at the lower price, which implies that the demand curve for the good is downward sloping. The consumer increases the quantity demanded of this good. Additionally, the consumer decreases the quantity of the other goods and services consumed, despite the price of other goods and services remaining unchanged. This change implies that the demand curves for each of the other goods and services shift leftward.

Economics

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A learning curve may be expressed as a relationship between the labor per unit (L) and the cumulative number of units produced (N)

Which of the following learning curves exhibits a faster reduction in cost of production due to learning, (1 ) L = 10 + N-1 or (2 ) L = 10 + N-0.5? A) Learning curve (1 ) B) Learning curve (2 ) C) Curves (1 ) and (2 ) exhibit the same rate. D) We cannot determine the rate of cost reduction without knowing the value of N.

Economics

An increase in M or an increase in V, other things equal, would definitely increase: a. the price level

b. real GDP. c. nominal GDP. d. unemployment.

Economics