demand supply Flashcards
What is the effect of property bubble
Supply increases as producer want to sell more before the drop in prices while demand decrease as ppl tends to buy flats after the bubble burst
Price decrease drastically
effect of shortage
other non-price competition such as queuing will emerge
the new competitive criteria do not necessarily depends on income
why aging problem leads to an increase in wage rate of nurse
demand for nurse is the derived demand for medical service. So when the demand for medical services increase, demand for nurses increase. As a result, the wage rate will be higher
why the consumption of rice decrease even tho there are increase in population
a change in taste
more substitutes available
a fall in price of substitutes
increase in income and rice in an inferior good
why price of the same good is different
different services
imperfect information
different cost of production
an exhibition sold 600000 tickets
supply curve vertical?
yes
why a price ceiling cannot ensure all lower income buyers obtain the quantity of goof they plan to purchase
there is shortage
non price competition emerged such as queuing
why a per unit tax would increase the proportion to larger bottle to smaller bottle sold
when the price of a good increases, the quantity demanded of the good decreases, vice versa, ceteris paribus.
(Here the unit of measurement to which the tax applies is bottle rather than volume of soft drinks. When the same amount of tax is added to each bottle then per volume of liquid contained in larger bottle soft drinks would become cheaper than the small bottle ones.)
The relative price of larger bottle soft drinks in terms of small bottles one thus drop. The law of demand then implies that people would buy more larger bottle soft drinks relative to small bottles ones so the proportion of large bottle soft drinks sold in the market would increase
