Real flow is exchange of goods & services between firms & households. & Money flow is exchange between 2 sectors
Answer:
The correct answer is A. True.
Explanation:
Derived demand is the demand for goods and services that is generated as a result of the demand for other goods and services. This type of demand usually corresponds to the demand for factors or products, since the demand for a good or service may be related to the process necessary to produce another good or service, although it can affect both producers and consumers.
Derived demand can sometimes lead to an increase in the price of a marginal product, since the demand for the resources needed to produce a physical product also increases.
The elasticity of the demand for a productive factor depends on the characteristics of the good. This dependency is explained through Marshall's laws:
- Replaceability, elasticity is greater the more easily one factor can be substituted for another in the production process.
- The elasticity of the demand for a factor will be greater the more elastic the demand for the good it produces. If the demand for the product varies, so will the demand for the factor.
- The elasticity of demand for the factors also depends on the elasticity of the other factors involved in the production process.
- Demand for the factor will be less elastic the lower its cost compared to the total cost of production.
<span>$65,000. A city water water-waste department has a four-year-old sludge pump that was initially purchased for $65,000. This pump can be kept in service for an additional four years, or it can be sold for $35,000 and replaced with a new pump. The price of the replacement pump is $50,000.</span>
E. Weather or not the buyer experiences
Answer:
Explanation:
Collusion is seen as bad for consumers and economic welfare, and therefore collusion is mostly regulated by governments. Collusion can lead to: High prices for consumers. This leads to a decline in consumer surplus and allocative inefficiency (Price pushed up above marginal cost)
