Joe decided to start washing cars on his street. The other kids in the neighborhood noticed Joe was making a lot of money washing cars and decided to open their own car wash. When they opened their own car wash, the equilibrium price decreased and the equilibrium quantity increased.
The price at which the quantity provided and demanded are equal is referred to as the equilibrium price. It is established by where the demand and supply curves cross. If more goods or services are produced than are needed to satisfy demand at the going rate, there is a surplus, which pushes prices lower.
Reduced demand will result in a drop in the equilibrium price and a reduction in supply. With everything else remaining constant, an increase in supply will result in a decrease in the equilibrium price and an increase in the amount required. The equilibrium price will increase as the supply declines, while the quantity needed will go down.
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Raise the income tax, which gives citizens less money to spend, and buy more services from civilian - owned businesses, which creates more jobs.
<u>Explanation:</u>
Expansion happens when an economy becomes because of expanded spending. At the point when this occurs, costs rise and the money inside the economy is worth short of what it was previously. The cash basically won't purchase as much as it would previously. At the point when a cash is worth less, its swapping scale debilitates when contrasted with different monetary standards.
There are numerous strategies used to control swelling; some function admirably, while others may have harming impacts. For instance, controlling swelling through pay and value controls can cause a downturn and cause work misfortunes. One well known strategy for controlling swelling is through a contractionary financial arrangement.
The objective of a contractionary strategy is to lessen the cash supply inside an economy by diminishing security costs and expanding loan fees. This diminishes going through in light of the fact that when there is less cash to go around: the individuals who have cash need to keep it and spare it, rather than spending it. It additionally implies there is less accessible credit, which can diminish spending. Diminishing spending is significant during expansion since it helps stop monetary development and, thus, the pace of swelling.
There are three fundamental instruments to complete a contractionary approach. The first is to build financing costs through the national bank. On account of the U.S., that is the Federal Reserve. The Fed Funds Rate is the rate at which banks acquire cash from the legislature, yet so as to bring in cash, they should loan it at higher rates.1
Answer:
The transfer payments to decrease and tax revenues to increase.
Explanation:
An automatic stabilizer is a fiscal policy tool that is used to correct the fluctuations in the economy through its normal working without any further government intervention. In case of expansion it increases taxes and reduces government spending.
An increase in the tax rates will increase the tax revenues of the government. At the same time, a reduction in government spending will decrease the transfer payments paid by the government.
Tangible property is the property that can be identified by the senses, it can be seen and possessed.
What is Tangible property?
- To distinguish it from intangible property, tangible property is defined in law as essentially everything that can be felt.
- This encompasses both real and personal property.
- The term "choices in possession" refers to physical property in English law and several Commonwealth legal systems.
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Answer:
The correct answer is c. both a monopoly and a competitive firm.
Explanation:
Monopolistic competition is an imperfect type of competition in which there is a high number of sellers in the market that have a certain power to influence the price of their product.
The products offered are characterized by having some differentiation and it is precisely this differentiation that makes these companies enjoy a certain market power, have a certain voice when it comes to setting their prices and are not merely "price-acceptors", as in the case of perfect competition. Therefore, the graphic representation of monopolistic competition will be that of the right, imperfect competition.
