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alexgriva [62]
3 years ago
8

What is it called where consumers react to rising prices by consuming less of a good and more of it's competitors?

Business
1 answer:
adelina 88 [10]3 years ago
6 0

Answer:

Substitute Effect

Explanation:

When a product's price increases, it becomes relatively expensive compared to its alternatives. The high price will encourage consumers to choose other goods that are relatively cheaper. Consequently, the price increase reduces the demand for the product while increases the demand for its substitutes.

The substitution effect describes how consumption is affected by an increase or a decrease in a product's price.

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Explanation:

A shift rightward in the labor market of a single employer would imply that the employer wants more labor. They will therefore increase the wages that they are paying their labor to entice more labor and the level of employment in the industry will increase as the employer hires more people.

Graphically speaking, when the labor demand curve shifts right, it will intersect with the labor supply curve at a higher equilibrium wage. The quantity of labor will also increase as it goes to a new equilibrium point.

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its c

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Answer and Explanation:

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A ____________ is generally priced at a flat rate and allows software to be used on all computers at a specific location.
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