Economics

Ans . 1 ElasticReason - Price elasticity is considered when a equipment possibility switch can either increase or brain the Ans .3 Quantity supplied exceeds quantity beged at that footingAns . 4 if the study curve shifts left and the supply increase sense of balance control volition riseAns .1 Elasticity of Demand - Elasticity of demand is the remark to which a HYPERLINK http / entanglement .investorwords .com /3808 / damage_change .html price change for an particular HYPERLINK http /network .investorwords .com /7202 /result .html results a unit change in HYPERLINK http /www .investorwords .com /1396 /demand .html demandFor example - thither is a demand of speed of light cars at a price of 5000 , but now if price goes down by 20 , there is increase in demand by 40 . This shows elasticity of demandAns .

2 practice of law of diminishing Marginal service - It is a perceived judge of a good which consumer declines with each(prenominal) additional unit consumedFor example - If you go to a pizza pie parlor , the first pizza will give you much than satisfaction and you will rate it 10 out of 10 , but now if you eat insurgent pizza you win t give it 10 out of 10 because your hunger has been commodious . This is called law of diminishing marginal utilityAns . 3 a . Income Increases -When income is increase that means that consumer can pay more , so when the demand exceeds supply then the price equilibrium will go up because c onsumers can pay more . When demand is low ! and supply is high...If you want to get a full essay, give it on our website: BestEssayCheap.com

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