Answer:
<em><u>Elasticity is an important economic measure, particularly for the sellers of goods or services, because it indicates how much of a good or service buyers consume when the price changes. When a product is elastic, a change in price quickly results in a change in the quantity demanded.</u></em><em><u>The concept of elasticity for demand is of great importance for determining prices of various factors of production. Factors of production are paid according to their elasticity of demand. In other words, if the demand of a factor is inelastic, its price will be high and if it is elastic, its price will be low.</u></em>
Explanation:
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Answer:
The primary difference between product markets and factor markets is that:
Product markets are markets related to products, goods, tangible finished items. This is where you'll get your product for sale and where people will buy it.
while
Factor markets are for the factors of production, mostly intangible, like labor, capital and entrepreneurial skills. This is what you'll use (including raw materials) to make your product.
Answer:
6) National Income Abroad
9) Exchange Rates
Explanation:
If a country becomes wealthier and its citizens gain access to more income, they will begin to import more goods and services from other countries which would mean they are spending more in relation to net exports.
If a country's exchange rate is such that its currency is strong, it would mean that imports from other countries would be cheaper when bought with the domestic currency so citizens would spend more importing which would impart next exports which is calculated as exports less imports.
When the price of a bond is below the equilibrium price, there is an excess demand for bonds and the price will rise.
<h3>What is Demand?</h3>
Demand refers to the amount of the money spent on the purchase of the commodity for the particular period of time. It includes the demand of the consumer goods, imports, and government spending.
The excess demand for the bond tends to increase the prices of bonds and rate of interest falls. Thus, ultimately leading to new equilibrium interest rate is lower than previous one.
Therefore, it can be concluded that When a bond's price is lower than its equilibrium price, there is an inflationary pressure on bonds, and the price rises.
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c. mixed market
Explanation:
Comumis exhibits all the characteristics of mixed market system