Answer:
c because isnt 2000=20% of 10000 so 40%
Explanation:
Answer:
understate the impact of a tax for substitutes and overstate the impact for complements.
Explanation:
Partial equillibrum analysis is consideration of only a part of the market to attain equillibrum. It is based on data that has restricted range. For example when the price of one good changes while others are held constant. This does not consider real life scenario that multiple prices are changing.
In this type of analysis there is less emphasis on tax on subsititutes and more for complements. This is because a single product is being considered and compliments share similar demand pattern so they are considered more.
Iron ore, sugar, grains (rice & wheat)
Answer: in the given hypothetical statement above in order for the market to coordinate the demand and supply for dvds, the price of dvds will have to increase. When the price of dvds increase the supply will increase too, because the suppliers will now have a greater profit margin than before. On the other hand, the demand will decrease because of the higher prices and in this way the demand and supply curves will reach an equilibrium.
