ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a change in incomes of potential customers
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a change in price of tickets to the concerts
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a change in rents charged by venue owners
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a change in seating capacity of concert venues
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Detailed explanation-1: -The production possibility curve (ppc) shows the maximum possible combinations of outputs when an economy operates at full employment. The loss of confidence will prevent money being acceptable and its functions will not operate effectively. This will restrict specialisation and output.
Detailed explanation-2: -Changes in factors like average income and preferences can cause an entire demand curve to shift right or left. This causes a higher or lower quantity to be demanded at a given price. Ceteris paribus assumption. Demand curves relate the prices and quantities demanded assuming no other factors change.
Detailed explanation-3: -Answer and Explanation: A change in the price of a good does not shift the demand curve.
Detailed explanation-4: -The law of demand states that when the price of a product goes up, the quantity demanded will go down – and vice versa.