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As the price of good x rises from 10 to 14 the quantity demanded of y rises from 100 units to 120 units are x and y substitutes or complements?
X and Y are substitutes i.e. Y can be used in place of X. A hypothetical example is meat and fish; if the price of meat rises, less of it will be demanded according to the law of demand. The demand will shift to the low-priced fish, assuming the price of fish is less than that of meat. Raymond. X and Y are substitutes i.e. Y can be used in place of X. A hypothetical example is meat and fish; if the price of meat rises, less of it will be demanded according to the law of demand. The demand will shift to the low-priced fish, assuming the price of fish is less than that of meat. Raymond.
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What does the p and q stand for on the axis of a demand graph?
Economics: P= Price and Q = Quantity Demanded.
When the percent change in price is greater than the percent change in quantity demanded demand is said to?
Elastic
What is the price elasticity for a good when there is a 10 percent decrease in price which results in a 2 percent increase in quantity demanded?
2/10=0.2 <1 the good is price inelastic
How do you find the equillibrium price and quantity using graphical and algebraic methods?
The demand and supply schedules for carrots in a certain market are given below: Price per ton Quantity demanded per month Quantity supplied per month Sh. '000 (Thousands of tons) (Thousands of tons) 2 110.0 5.0 4 90.0 46.0 8 67.5 100.0 10 62.5 115.0 12 60.0 122.5 Determine the equilibrium quantity and price by graphical method.(4marks)
A perfectly price- inelastic demand curve is A horizontal b downward sloping c upward sloping d vertical?
A perfectly price-inelastic demand curve is vertical (Parallel to Y-axix) because the percentage change in quantity demanded is nil whatever the percentage change happens in price.
Price of substitutes and complements vs price of commodities?
Relationship of good price to price of substitutes and complements: 1) Substitutes: as the price of substitutes for a good falls, the price of a good must fall in order to maintain demand. 2) Complements: as the price of complements falls, the price of a good can increase and still maintain the same level of demand.
At equilibrium price the quantity is demanded always equal to the quantity supplied?
Yes, the equilibrium price equates the quantity supplied to the quantity demanded.
If the price is less than the equilibrium price what is the relatiionship of quantity supplied to quantity demanded?
If the price is low, suppliers may well not wish to supply the full quantity that is demanded by consumers.The quantity demanded and quantity supplied determines the equilibrium price in the market. The quantity where these two are equal, that is where the market price is set.
How do you calculate the quantity demanded when the elasticity is given?
To calculate the quantity demanded when the elasticity is given, you can use the formula: Quantity Demanded (Elasticity / (1 Elasticity)) (Price / Price Elasticity). This formula helps determine the change in quantity demanded based on the given elasticity and price.
When is a price floor not binding?
the quantity of the good demanded with the price floor is less than the quantity demanded of the good without the price floor
What is the price called at which the quantity demanded is equal to the quantity supplied?
equilibrium price
When quantity demanded is greater than quantity supplied the price will?
the price increase
What is the cross elasticity of demand of demand of good Y forgood X?
The cross elasticity of demand measures how the quantity demanded of good Y responds to a change in the price of good X. It is calculated as the percentage change in the quantity demanded of good Y divided by the percentage change in the price of good X. A positive cross elasticity indicates that goods X and Y are substitutes, while a negative value suggests they are complements. If the elasticity is zero, it implies that the goods are unrelated.
How can one calculate the quantity demanded when the price is given?
To calculate the quantity demanded when the price is given, you can use the demand function or demand curve. Simply plug in the given price into the equation or curve to find the corresponding quantity demanded.
What is the relationship between the price and the quantity demanded?
The relationship between price and quantity demanded is inverse, meaning as the price of a product increases, the quantity demanded by consumers tends to decrease, and vice versa. This is known as the law of demand in economics.
The quantity of a product that will be purchased at a given price is the?
quantity demanded
Why price and quantity demanded are inversely related?
Price is inversely related to quantity demanded because as price rises, consumers substitute other goods whose price has not risen.
