Explain the aggregate supply in the short run. In the short-run‚ the aggregate supply curve is upward sloping. There are two main reasons why the quantity supplied increases as the price rises: 1. In the short-run‚ the nominal wage rate is fixed. As a result‚ an increasing price indicates higher profits that justify the expansion of output. 2. An alternate model explains that the AS curve increases because some nominal input prices are fixed in the short-run and as output rises‚ more production
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An oligopoly describes a market situation in which there are limited or few sellers. Each seller knows that the other seller or sellers will react to its changes in prices and also quantities. This can cause a type of chain reaction in a market situation. In the world market there are oligopolies in steel production‚ automobiles‚ semi-conductor manufacturing‚ cigarettes‚ cereals‚ and also in telecommunications. Often times oligopolistic industries supply a similar or identical product. These
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money)‚ would cause a shift in demand (the capability and willingness to consume a commodity at a given price at a given time) to the right (from D to D1). The reason for this is because consumers are predicted to borrow more money at lower interest rates (as the rewards for saving money are less than if interest rates were higher)‚ which would therefore lead to an increase in spending. As a result‚ the equilibrium (when the supply of a commodity equals its demand‚ resulting in neither surplus nor
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Essay On Supply and Demand Model (Standard and Aggregate) Essay On Supply and Demand Model (Standard and Aggregate) Course Title Macroeconomics (BUS209) Submitted To Dr. Shuddhasattwa Rafiq Course Instructor Submitted By [pic] Institute of Business Administration Jahangirnagar University Institute of Business Administration Jahangirnagar University Savar‚ Dhaka-1342 Subject: Submission of the Essay
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The Demand for Resources Multiple Choice Questions Derived dema1 1. Resource pricing is important because: A) resource prices are a major determinant of money incomes. B) resource prices allocate scarce resources among alternative uses. C) resource prices‚ along with resource productivity‚ are important to firms in minimizing their costs. D) of all of the above reasons. Answer: D 2. Which of the following statements best illustrates the concept of derived demand? A)
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1. Demand Curve for Oligopolistic Market. Above the kink‚ demand is relatively elastic because all other firms’ prices remain unchanged. Below the kink‚ demand is relatively inelastic because all other firms will introduce a similar price cut‚ eventually leading to a price war. Therefore‚ the best option for the oligopolist is to produce at point E which is the equilibrium point and the kink point. This is a theoretical model proposed in 1947‚ which has failed to receive conclusive evidence for
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Introduction 3 The Demand Curve 4 Movement along the demand curve: 5 Difference between movement or shifts along the demand curve 6 Shifts in the demand curve: 6 Factors that causes the demand curve to shift 8 Price of the good: 8 Price of related goods: 8 Substitutes: 8 Complements: 9 Income: 9 Individual taste and preferences: 9 Supply 9 Law of supply 9 Movement along and shifts in supply curve 10 Movement along the supply curve 11 Shifts in the supply curve 11 Factors
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Aggregate supply Aggregate supply curve showing the three ranges: Keynesian‚ Intermediate‚ and Classical. In economics‚ aggregate supply is the total supply of goods and services that firms in a national economy plan on selling during a specific time period. It is the total amount of goods and services that firms are willing to sell at a given price level in an economy. Analysis There are two main reasons why Qs might rise as P rises‚ i.e.‚ why the AS curve is upward sloping: Aggregate
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market|bullion Gold down by Rs 40 on poor demand Email this article Print this article Share on Reditt Newsvine Google Bookmarks Live Bookmarks Technorati Yahoo Bookmarks Blogmarks Del.icio.us ApnaCircle Tweet The author has posted comments on this articlePTI | Oct 6‚ 2012‚ 03.20PM IST NEW DELHI: Gold continued it downward spiral for the fourth straight day in the bullion market here on Saturday by losing Rs 40 to Rs 31‚480 per 10 grams on poor demand due to ’Shradhs’ and a weak global
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University of Phoenix Material Supply and Demand Curves Answer the following questions Write the definition for each of the following: 1. Law of Demand The law of demand states that quantity demanded rises as price falls and other things stay constant. The quantitly of a good demanded is inversely related lto the good’s price. (Colander‚ 2013‚ Chapter 4). For example‚ as the price of a good increase the demand for that good will decrease. The law of demand also relates to a decrease in the price
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