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Murljashka [212]
3 years ago
5

Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. W

hat would we expect to occur in this market?
Business
2 answers:
kirill [66]3 years ago
5 0

Answer:

an indeterminate effect on equilibrium quantity and a fall in equilibrium price.

Explanation:

A normal good is a good whose demand increases when income increases and falls when income falls.

If income falls and the good is a normal good, demand would fall. This would lead to a fall in price and quantity.

If cost of input falls, the cost of production would fall and supply would increase. This would lead to an increase in quantity and a fall in price.

The combined effect would an indeterminate effect on equilibrium quantity and a fall in equilibrium price.

I hope my answer helps you

musickatia [10]3 years ago
3 0

Answer:

The equilibrium price would decrease, but the impact on the amount sold in the market would be ambiguous.

Explanation:

Two separate things should happen in this market:

  • a decrease in the production costs will shift the supply curve to the right which should decrease the price of the good at all demand levels. Generally the equilibrium quantity should increase.
  • a decrease in the income of buyers will shift the demand curve to the left, decreasing the equilibrium price. Generally the equilibrium quantity should decrease.

Both events will result in a decrease of the equilibrium price, so it is safe to say that the equilibrium will fall. But one event increases the equilibrium quantity, while the other decreases it. So the net effect on the equilibrium quantity is unknown, it could increase or decrease.

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Suppose labor's share of output is 60% and capital's share of output is 40%. If labor grows at a rate of 5%, then this will caus
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If capital grows at a rate of 5%, then this will cause output to grow at a rate of 1%.

Given,

Labor's share of output = 60%

Capital's share of output = 40%

Labor grows on a rate of = 5%

Capital grows on a rate of = 5%

Thus, output will grow at a rate of = ?

SR(t) = Δy/Δt/Y - (αΔk/Δt/k(t) + (1-α)(ΔL/Δt/L(t))

Here, α = 60%

So, labor's share = (1 - 0.6) × 5  = 2%

Capitals contribution = 0.4 × 5  = 2%

Implied rate of growth in technology is also given,

SR = (5) - (2+2)

= 1%

Hence, if capital grows at a rate of 5%, then this will cause output to grow at a rate of 1%.

To learn more about capital here:

brainly.com/question/24212838

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1 year ago
A robot manufacturing company in Southeast Asia undertakes a government project to produce multi-utility robots. It requires a s
eimsori [14]

Answer: a. Computer-aided manufacturing

Explanation: A computer-aided manufacturing would help the robot manufacturing company in this regard since it can provide the required software to control the machine tools and processes needed in the manufacture of the multi-utility robots.

Computer-aided manufacturing (CAM) is defined as the use of software and computer-controlled machinery to automate a manufacturing process and is composed entirely of software that tells a machine how to make a product through the generation of toolpaths; a machinery that can turn raw material into a finished product and a post processing unit that converts toolpaths into machine languages. Computer-aided manufacturing thus provides high–speed machine tool paths that greatly minimize cycle times, reduce tool and machine wear and general improvement in quality and accuracy of cutting.

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What is form utility? <br><br> ...help
zheka24 [161]

Answer:

Utilities mean useful features, or something useful to the home such as electricity, gas, water, cable and telephone. Examples of utilities are brakes, gas caps and a steering wheel in a car. Examples of utilities are electricity and water.

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I will use a debit card because my parents add my allowance to my checking account. Other possible payment decisions I can make are to use a check.

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