ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a transportation strike.
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a government excise tax
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a decrease in the price of raw materials
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an increase in the supply of tennis balls
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Detailed explanation-1: -Q. Which of these would most likely increase the supply of soccer balls? elasticity.
Detailed explanation-2: -Which of the following things would cause a decrease in the demand for soccer cleats? An increase in the price of soccer balls, When the price of a complement increases, it causes a decrease in demand for the original good. Soccer balls and soccer cleats are complements.
Detailed explanation-3: -Which of the following is likely to shift the demand curve for a normal good to the right? The answer is “B. An expectation of a shortage in the future.” If consumers believe that the product will be unavailable in the future, they will purchase more of it at every price today.
Detailed explanation-4: -In an inflationary environment, unevenly rising prices inevitably reduce the purchasing power of some consumers, and this erosion of real income is the single biggest cost of inflation. Inflation can also distort purchasing power over time for recipients and payers of fixed interest rates.