Pens are normal goods. What will happen to the equilibrium price of pens if the price of pencils rises, consumers experience an increase in income, writing in ink becomes fashionable, people expect the price of pens to rise in the near future, the population increases, fewer firms manufacture pens, and the wages of pen-makers increase?

Answers

Answer 1
Answer:

Answer: Equilibrium price rises.

Explanation:

(a) Pen and pencil are substitute goods. So, if the price of pencil increases the demand for pens increases which shifts the demand curve rightwards and hence, equilibrium price rises.

(b) There is a direct relationship between the income of an individual and demand for normal goods. If there is an increase in the income of the consumer as a result demand also increases which increases the equilibrium prices.

(c) Writing in ink becomes fashionable, people expect the price of pens to rise in the near future and the population increaseswill lead to increases the demand for pens which which shifts the demand curve rightwards and hence, equilibrium price rises.

(d)  Wages of pen-makers increase will increase the cost of production and hence increases the equilibrium price of pens.


Related Questions

The main economic activity in most low-income countries is:
The ability of firms in some industries to benefit from an increasing ability to outsource manufacturing or service functions to​ lower-cost foreign labor markets is an example of​ a(n) _____ trend.
What is the best example of a factor that indicates the success of a corporation?
Which of the incentives listed is MOST LIKELY a negative incentive used to discourage a specific action?a) couponsb) parking ticketsc) frequent flier milesd) buy one, get one free
Most management problems can be prevented by carefully defining which areas?

Which of these is not affected by a person's credit score?A. Apartment rentals
B. Credit card rates
C. Ability to get a cell phone contract
D. Federal income tax

Answers

D. Federal income tax

A typical demand curve shows that..

Answers

The higher the price, the lower is the demand for a particular product. Hope it helps!

A typical demand curve shows an inverse relationship between the price and quantity demanded of a product. As price increases, demand decreases and vice versa, demonstrating the Law of Demand.

A typical demand curve shows the relationship between the price of a product and the quantity demanded. It slopes downward, indicating an inverse relationship between price and quantity. As the price of a product increases, the quantity demanded decreases, and vice versa. This principle is referred to as the Law of Demand.

For instance, if the price of a chocolate bar is high, consumers may buy less because it's too expensive. But if the price decreases, people might buy more because it's more affordable. Therefore, the demand curve visually represents this behavior.

Learn more about Demand Curve here:

brainly.com/question/37524165

#SPJ6

What benefits are available to providers accredited by a state QRIS system?A. Lowering the minimum number of staff needed
B. Tax credits
C. Discounts at local suppliers
D. Fewer licensing requirements

Answers

B tax credits are the benefits available to providers accredited by a state QRIS system

Which of the following is true regarding this economic model? a. The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless.
b. In order to construct such a model, an economist would need real life data regarding countries that only produce two goods.
c. This PPF is not an economic model.
d. The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts.

Answers

The statement that is true of the model is d. The fact that there are only two goods produced in this theoreticaleconomy is a simplifying assumption that still allows economists to demonstrate key economic concepts.

What are economic models ?

Economic models are simplified representations of the real world that are used to understand economic behavior. They often make simplifying assumptions in order to make the model more manageable.

In the case of the production possibility frontier (PPF), the assumption that there are only two goods produced is a simplifying assumption that allows economists to demonstrate key economic concepts such as opportunity cost and economic growth.

Option D is correct.

Find out more on economic models at brainly.com/question/30364211


#SPJ6

C !!!!!!! I just took the test

The money one makes is not necessarily the money one takes home. This income represents your salary before taxes are taken out of it.-W-2 form
-FICA
-Gross income
-Net income
-W-4 form

Answers

That would be the gross income. This is the opposite to the net income, the money which is not on paper, but the money you take at home after the company/you pays first for the taxes.

Which of the following is classified as investment? I. existing homes II. business spending on new equipment III. purchase of corporate stock IV. taking out a loan to build an office building

Answers

Answer:

The answer is II. business spending on new equipment

Explanation:

For a spending to be classified as investment, the money must ne spent or acquiring non-current asset(fixed asset or long-lived asset.

In the question above, only business spending on new equipment will be classified as investment because the business spent money to acquire non-current asset.

Purchase of current stock is a financing activitiy while taking out loan is also a financing activitiy.