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ruslelena [56]
3 years ago
14

The larger the coefficient of price elasticity of demand for a product, the: larger the resulting price change for an increase i

n supply. more rapid the rate at which the marginal utility of that product diminishes. less competitive will be the industry supplying that product. smaller the resulting price change for an increase in supply.
Business
1 answer:
patriot [66]3 years ago
5 0

Answer:

The correct answer is smaller the resulting price change for increase or rise in supply.

Explanation:

Coefficient of price elasticity is the one which is defined as measuring or evaluating the elasticity of price of the demand in coefficient. In retaliation to the change or variation in the price, demand for the product could be inelastic, elastic, perfectly inelastic or the perfectly elastic grounded on the coefficient.

When the coefficient of price elasticity of demand for the product is larger, then it will result in the smaller price change for the rise or increase in the supply.

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The Heckscher-Ohlin model assumes that there are two countries, each of which produces two goods (say manufactures and agricultu
Murrr4er [49]

Answer:

D. The ratio of the quantity of labor to the quantity of capital is different for each nation, resulting in different relative endowments of capital and labor.

Explanation:

The Heckscher-Ohlin (H-O) model is an international economic theory which states that each country should produce and export what it is most efficient in.

The theory is also referred to as 2x2x2 model because it is employed to assess trade and trade equilibrium between two countries that have different areas of specializations and natural resources.  By implication, the emphasis of the model is that a country should produce and export goods which it has its factors in abundance to produce. A country should produce and export good in which it a relative factor endowment and therefore import goods in which it does not have relative factor abundance.

Assuming there are two factor of production, capital and labor, country X has a relative factor endowment or abundance in labor if the ratio of its quantity of labor to the quantity of capital is higher than that of country Y. Also, country Y also has a relative factor endowment or abundance in capital if its ratio of the quantity of capital to the quantity of labor is higher than that of country X. Therefore, country X should produce a product that uses labor intensively while country Y should produce good that uses capital intensively.

Therefore, an additional assumption of the Heckscher-Ohlin model in the question is option D. The ratio of the quantity of labor to the quantity of capital is different for each nation, resulting in different relative endowments of capital and labor.

I wish you the best.

6 0
3 years ago
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cricket20 [7]
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PtichkaEL [24]

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Explanation:

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