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What is the different between price effect and sales effect?
Both relate to Elasticity and Total Revenue:
a. A price effect: After a price raise, all unit sold sells at a higher price that tends to increase revenue.
b. A sales effect: After a price raise, fewer units are sold that tends to lower revenue.
Suppose the demand for loanable funds was stable but the supply fluctuated from year to year. what cause fluctuate in supply?
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What is the study of economics about?
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List the 3 factors that determine the price elasticity of demand? State the factor that determines the price elasticity of supply?
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