Income elasticity of demand measures the receptiveness of the quantity demanded for a good or service to a change in income.
It's calculated as the ratio of the percentage change in quantity demanded to the percentage change in income.
Explanation:
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Answer:
social bookmarking sites
Explanation:
Reddit, Digg and StumbleUpon are all Web sites dedicated to social bookmarking.
They fetch the contents from other Web sites and encourage their users to share their preferences on what they like and see all over the Internet with their friends.
They're not social networks per say because people aren't directly in contact with each other, only through their shared contents.
They're not tech blogs, because they rarely have any original contents and they're not targeting only technologies.
They're not video sites either, because they're sharing all kinds of contents.
The government often plays some key roles in the economy. Redistributing income, providing a structure and promoting stability are the role of government.
Role of government
The government plays some key roles which are;
- They Provide legal structure.
- They are known to Redistribute income.
- Reallocating resources.
- They Promote stability.
The redistribution of income is known to be the distribution carried out again or anew.
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Answer:
a. AD curve will shift to the right
b. AD curve will shift to the left
c. Movement along the AD curve.
Explanation:
a. When firms become more optimistic and increase their spending on machineries,this brings about changes in investment and it will cause a shift to the right in the aggregate demand curve.
b. When The federal government increases taxes in an attempt to reduce a budget deficit. This will cause a change in consumption as people will have less money to spend since disposable income has been reduced, and it will cause the aggregate demand curve to shift inwards to the left.
c. A 4 percent in US inflation will bring about a change in price level and there will be a movement along the aggregate demand curve.
Answer:
Resources are limited.
Production requires resources.
Everyone wants or needs goods.
Explanation:
Different regions provide different resources that people can use for their business. People in that region need to understand the type of resources that are available for them and produce the goods that can be sustained by the available resource.
This scarcity means that acquiring resources require a certain amount of capital. Since people do not unlimited capital, they have to be picky with their consumption/production to ensure the ones with highest priority are fulfilled first.
On top of that, everyone wants or needs goods. Meaning that in order to obtain a certain resources, people will have to face competition. As the competition become more fierce, the sacrifice that is needed to obtain a certain product is increased. This is also why they have to watch out which product they should choose to consume.
