Answer:
b. decrease in the demand for the good.
Explanation:
An inferior good is a good whose demand falls when income increases and rises when income decreases.
A decrease in demand would lead to a leftward shift of the demand curve.
Inferior goods contrasts to a normal good. A normal good is a good whose demand increases when income rises and falls when income reduces.
Only a change in the price of a good leads to movement along the demand curve for that good.
I hope my answer helps you
Answer: True
Explanation:
Marginal externality is constant. However, it may not be calculated with accuracy. Hence, there's need for estimates at reasonable levels.
Hence, the policymaker's estimate of $35/ unit is reasonable and within the acceptable range of between $10 and $50/unit. Also, the tax charge raises social welfare compared to no tax at all.
Answer:
wax
Explanation:
Raw materials are the components or ingredients used to manufacture finished goods. They are the unprocessed materials that go through the production process or refining to give a consumable product.
Wax is the main raw material in the production of candles. A company involved in making candles need a source of wax to stay in business.
Answer:
The correct answer is a monopolistic competition.
Explanation:
Monopolistic competition is a form of market in which there are a large number of buyers and sellers. The sellers are providing differentiated products which are close substitutes.
There is a high degree of competition in the market. The entry and exit in the market are relatively easier than a monopoly market.
To increase their market share and earn more profits, the firms take the help of branding and advertising.
In the given example, the supermarket chain is operating in monopolistic competition as it has to face a high degree of competition and is using branding, etc to create a niche for itself.
A competitive market economy with low barriers to entry affords an entrepreneur with
the opportunity to bring new and different products and services to the market.
