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Prices of other goods must remain constant
Changes in the prices of other goods frequently impinge on the demand for a particular commodity. If prices of commodities for which demand is inelastic rise, demand for a commodity other than these in all probability would decline even though there may not be any change in its price. Thus, for the law of demand to operate it is imperative that prices of other goods don't change.
Policy conflicts In their attempts to achieve the policy objectives, governments often face what are called conflict of objectives. These arise partly because unlike private
exaplain cournot''s duopoly model with graph?
p=10, TC= 1000+2Q+.01Q^2, Q=?
Measures to control inflation An inflationary situation can effectively be addressed/tackled if the cause is first and foremost identified. Governments have basically three
Factors determining Elasticity of demand Ease of substitution. Nature of the commodity i.e. whether it is a necessity of life, luxury or addictive. Consumers
a. A major freeze destroys a large number of orange trees in Florida Ans- Since the freeze destroyed a large number of orange trees in Florida the number of oranges the selle
PRODUCT DIFFERENTIATION Product differentiation describes a situation in which there is a single product being manufactured by several suppliers, and the product of each su
McDonalds has been operating in many Asian countries such as China, Singapore and Japan. However, McDonalds has yet to open its ?rst restaurant in Vietnam, a country with over 80 m
what is the definition
managerial principles to consider when determining level of output of afirm
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