BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Excess demand
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Relative price
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Inflated price
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Incentives
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Detailed explanation-1: -The price a consumer is willing to pay for a good depends on his marginal utility, which declines with each additional unit of consumption, according to the law of diminishing marginal utility. Therefore, the price decreases for a normal good when consumption increases.
Detailed explanation-2: -Producer surplus is the difference between how much a person would be willing to accept for a given quantity of a good versus how much they can receive by selling the good at the market price.
Detailed explanation-3: -The elasticity of supply and demand and the goodwill of the company are external factors governing the prices since these factors are not related to the picing of the product internally. Was this answer helpful?
Detailed explanation-4: -The Producer Price Index is a family of indexes that measures the average change over time in the selling prices received by domestic producers of goods and services.