Explain the output effectof a factor price increase
What will be an ideal response?
An increase in the price of a factor leads to an increase in the cost of production. When a firm faces higher costs, it is likely to produce less in the short run. When the firm cuts its output, it lowers its demand for all factors of production.
Economics
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Suppose that people decide riding scooters is no longer fun. The equilibrium price of a scooter ________, and the equilibrium quantity of scooters ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases E) does not change; decreases
Economics
How can long run values in the real exchange rate change?
What will be an ideal response?
Economics