Answer:
Demand curve will drop
Explanation:
Whenever the cost of production increases in optional commodities and services, the demand is likely to drop because such product or services if produces in large quantity may not bring back the cost incurred, and besides such product or services can be substituted for something else. Production is simply affected.
If price increase in the cost of the product or services, demand will could drop if it is a none essential commodity. This is so because price determines production rate and the product or services in question.
As for bread which is an essential commodity, an increase in employees pay will be factored into the price of production and cost increased alongside demand because it is food item and not an optional product and services.
Answer: Decreasing cost industry
Explanation:
A decreasing‐cost industry is an industry where the costs decrease as there is expansion in the industry. In this situation, the industry's long run supply curve will slope downward because as there is more production of output, minimum average cost of production for every firm decreases with the decrease in costs.
A decreasing cost industry is characterized by the lower costs and prices due to economies of scale and technological advancement.
We can say the price level has risen in the economy from 2019 to 2020.
In the U.S., growth is expected to slow to 2% in 2020 from 2.3% in 2019 and fall further to 1.7% in 2021 (2020 growth compared to October WEO 0.1 percentage point decrease).
Real GDP fell by 3.5% in 2020 (from the 2019 annual level to the 2020 annual level) compared to a 2.2% increase in 2019 (Table 1).
The outbreak led to a sharp contraction in the economy in March 2020, resulting in real GDP contracting by 5.1% annualized in the first quarter and 31.2% in the second quarter.
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Answer:For example, the Ricardian model of trade, which incorporates differences in technologies between countries, concludes that everyone benefits from trade, whereas the Heckscher-Ohlin model, which incorporates endowment differences, concludes that there will be winners and losers from trade.