Essays Tagged: "Substitute good"
Micro Economics
reas supply only shifts a small way causing the price to rise from P1 to P2.e. Rail and Coaches are substitute goods. Therefore if the price of rail travel is too rise then the demand would contract, ...
Subjects: Businesss Research Papers > Marketing
Why is perfect competition sometimes regarded as an ideal market structure and why does Samuelson write that it doesn't faithfully represent the facts about modern industry?
entrepreneurs and each individual buyer or seller does not influence the market, there are perfect substitutes for all goods and the demand is perfectly elastic, hence there is no price rise or fall. ... un, particularly in countries that are not true democracies.Also, a good never really has a perfect substitute for itself, nor is the demand curve perfectly elastic for most goods. Individual taste of ...
Subjects: Social Science Essays > Economics
MARKET EQUILIBRIUM AND GOV INTERVENTION
nded at the same price. Factors that may cause an increase in demand include a rise in the price of substitute goods and a fall in the price of complementary goods, higher prices expected in the futur ... m price and equilibrium quantity.(diagram)A decrease in demand may be caused by a fall in the price substitute goods and a rise in the price of complementary goods, an expected decline in the price of ...
Subjects: Social Science Essays > Economics