Joshua is currently consuming the optimal (utility-maximizing) quantities of tuna and ham when the price of tuna suddenly decreases. He will respond to this price change by increasing the consumption of tuna as his purchasing power will increase.
Whenever the price of a commodity is decreased, it increases the purchasing power of the consumer and hence the consumer will increase the demand of the goods as well. The consumer will be able to save more money as their expenses are reduced.
According to the law of demand and supply, demand and supply are related to each other and also affect the price of the commodity. The price tend to increase when the supply is lower than the demand and the price tend to increase when the supply exceeds the demand.
To learn more about purchasing power here
brainly.com/question/14892961
#SPJ4
Answer:
In American political discourse, states' rights are political powers held for the state governments rather than the federal government according to the United States Constitution, reflecting especially the enumerated powers of Congress and the Tenth Amendment.
Explanation:
Answer:
What are the 3 basic questions that every economic system must answer? What to produce? How to produce? Whom to produce it for?
Explanation:
we learned this in 8th grade
