Answer:
The correct answer is option C.
Explanation:
The opportunity cost of any economic decision is the cost of giving up its alternative. We are aware that we have limited resources with alternative uses and we have to use these resources to satisfy alternative needs and wants. In order to increase spending resources on one thing, we need to decrease spending on its alternative.
Here, the parking spot on the driveway can be used for personal use or can be used for renting. The opportunity cost of using the spot for personal parking is the money that could have been earned by renting it to others.
Answer:
tacit cooperation is the correct answer.
Explanation:
Solution:
Let's start by assuming that the taxi ride demand is extremely elastic, to the extent that it is vertically sluggish! If the cabbies raise the fair price by 10% from 10.00 per mile to 11.00 per kilometre, the number of riders remains 20.
Total income before fair growth= 20* 10= 200.
Total income following fair growth = 11* 20= 220.
A 10% increase in the fare therefore leads to a 10% increase in the driver's revenue.
Therefore, the assumption in this situation is that the cab drivers think the taxi driving requirement is highly inelastic.
The demand curve facing the drivers of the cab is still inelastic, but not vertically bent.
When the rate increased from 10% to 11, riders declined from 20% to 19%
Total revenue before fair growth is 20* 10= 200
The gap between revenue and fair growth is 19* 11= 209
This means that a realistic 10% raise doesn't result in a 10% boost on income Because the market curve for taxi rides is not 100% inelastic, but rather low inelastic, so that a fair increase (control) allows consumers to lose their incomes.
Answer:
a. monopolistic elements in the economy will prevent an immediate sharp fall in prices as a result of decreasing demand
Explanation:
When there is recession the price of the factor goes down and with that, the insufficient demand for a certain good or services is eliminated. The reasoning is that the decrease in prices stimulates demand and adjust the market.
Keynes among other economist consider that unemployment increase during recessions because the nominal wages rate do not fall. As the union and worker do not want to see their wage decrease. Same is applied to prices which makes then inflexible in a downward direction.
While "supply creates its own demand" is "Says's Law" which is rejected in keynes main book "The general theory"
Hece option A is the only one which is true
