Firstly, it is important to understand the exact meaning of the term Complimentary goods. Complimentary goods are a pair of two goods which complete each other. In other words, two goods which are generally used together as a single commodity…
Public goods:As the name suggests, public goods are goods which are provided to the public at a very reasonable cost or generally free of cost which are are non-rival, non- excludable in nature. Non - rival means: If a product…
As per the statement given above, Rent control policies are expected to create a shortage in the market and this will be a more severe problem in the long run. Hence, option B is the correct option. The reason behind this is that the…
The above scenario which says that “frozen food and microwave go together to lower opportunity cost of preparing a home cooked meal” the answer to this is yes. Yes it is a possibility that microwave and frozen food go together,…
Let us understand the elasticity of the automobiles with the help of the relationship between the consumer’s total expense and the price of the product: What does Elasticity mean? Ineconomic terms, elasticity generally the responsive nature of demand and supply…
One of the main downfall of the year 2007-2009 or in common terms the reason behind the financial crises for the given financial years was not just the collapse of the housing market, but also the collapse of the…
According to the information, which was examined regarding the minimum wages in the U.S. the statement which is correct is the statement C, as it states that “The value of the minimum wage, relative to the average wage in the…
The scenario which is given is - workers after negotiating start earning more wages and during the same time the income of the household also increases. This scenario will have two affects: First impact: Due to the increase in the…
Firstly, it is important to understand the exact meaning of the term Complimentary goods. Complimentary goods are a pair of two goods which complete each other. In other words, two goods which are generally used together as a single commodity…
Amongst all the options, Option D is correct which says that “Price of McDonald’s hamburger will decrease, quantity will increase”. According to the situation which gives a hypothetical situation that Zip decides to lower the price of all the hamburgers…