Question: When prices for homes rise, why might construction companies decide to build more homes?

When prices for homes rise Why might Construction companies decide to build more homes to increase employment to make a profit for creating a resources to boost name recognition?

For a well functioning market, there needs to exist an equilibrium between demand and supply. The construction companies decide to build more homes when the prices for homes increases to meet the demand and make a profit.

Which factors must a producer consider when deciding?

Which factors must a producer consider when deciding what good to supply? Check all that apply. the appeal of the good to family members the elasticity of a good being supplied competition within the market the ability to produce the good efficiently the ability to produce a good of low quality.

Which best describes what happens to the amount of a good or service that is supplied to consumers?

Which best describes what happens to the amount of a good or service that is supplied to consumers? The amount of a good or service can change.

Which best describes the role the availability of resources plays when a company is considering whether to produce a certain good?

Which best describes the role the availability of resources plays when a company is considering whether to produce a certain good? Resources can always be obtained, no matter what the cost. If a resource is difficult to obtain, production costs will be high.

Is a measure of behaviors by producers and consumers in response to change in price?

Elasticity is the measure of behaviours by producers and consumers in response to changes in price. It is the conic term which measures how the supply and demand is affected and changed because of an increase or decrease in price. If substitutes are available at a more convenient price then people may switch to them.

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Which events could cause the change in supply?

Factors that can shift the supply curve for goods and services, causing a different quantity to be supplied at any given price, include input prices, natural conditions, changes in technology, and government taxes, regulations, or subsidies.

What happens when the price of a good increases?

Changes in expected future income and prices change demand. When the price of a good rises, there is a movement up along the demand curve and a decrease in the quantity demanded. When the price of a good falls, there is a movement down along the demand curve and an increase in the quantity demanded.

Which best summarizes how consumer demand changes?

The answer is: Consumer demand changes over time based on specific factors. These are preferences, earning, price of the goods, prices of related goods(market trend), taste, and expectation, etc. These are many factors but it has been observed that based on these specific factors only consumer demand gets changed.

Which best describes a reason that consumer demand can change?

Which best describes a reason that consumer demand can change? It helps consumers tell producers when prices are too high.

What are changes in demand?

A change in demand describes a shift in consumer desire to purchase a particular good or service, irrespective of a variation in its price. The change could be triggered by a shift in income levels, consumer tastes, or a different price being charged for a related product.

What happens to consumer surplus if the price of a good increases?

A consumer surplus happens when the price consumers pay for a product or service is less than the price they’re willing to pay. Consumer surplus always increases as the price of a good falls and decreases as the price of a good rises.

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Why is supply upward sloping?

Firms need to sell their extra output at a higher price so that they can pay the higher marginal cost of production. The supply curve slopes upward, reflecting the higher price needed to cover the higher marginal cost of production.

Which explains the connection between the law of demand and excess demand?

Which explains the connection between the law of demand and excess demand? The law states that decreases in price leads to greater supply and equilibrium, which occurs during excess demand. The law states that increases in price leads to greater supply and equilibrium, which occurs during excess demand.

Which best explains why the law of supply operates the way does in a free enterprise economy?

Which best explains why the law of supply operates the way it does in a free enterprise economy? Companies want to be as profitable as possible. microeconomics. is a measure of behaviors by producers and consumers in response to changes in price.

Which is an example of a positive incentive for consumers?

Example of positive incentives for consumers will be a discount coupon or free sample of any product with the purchase of some other product.

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