ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Thousands of people leave a small town due to a factory closing down. Sales at the local grocery store are reduced. What causes this change?
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Prices or availability of substitutes
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Prices or availability of complementary goods
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Change in the weather or season
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Change in the number of buyers
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Explanation:
Detailed explanation-1: -The factory shutdown causes this migration. The grocery store located in the concerning small town observes a decline in the sales record. Due to the migration of people, the quantities of buyers decline in the town.
Detailed explanation-2: -The relationship between the supply and demand for a good (or service) and changes in price is called elasticity. Goods that are inelastic are relatively insensitive to changes in price, whereas elastic goods are very responsive to price.
Detailed explanation-3: -Q. When companies compete in a market economy, what is usually the result? Consumers are able to buy goods for the best available price.
There is 1 question to complete.