Often asked: When Prices For Homes Rise, Why Might Construction Companies Decide To Build More Homes?

When prices for homes rise Why am I construction companies decide to build more homes?

According to the same law, if the demand decreases, then the price also decreases. 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.

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Which factors must a producer consider when deciding?

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.

How does the law of supply say the factory respond to the increase in the price of blue widgets?

Answer: the law of supply says that the factory will respond by producing more blue widgets. under the current model, input costs aside, the factory stands to make $100 dollars a day if both blue and green widgets are priced at $5 a widget.

Which best describes the role the availability of resources place 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.

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?

Which best summarizes how consumer demand changes? It helps consumers tell producers when prices are too high. The degree to which quantity demanded changes after a price change is called. elasticity of demand.

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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.

What is the primary incentive of each producer to make widgets?

(a) The primary incentive would be the price. As the price increases, each of the producer wishes to make more widgets to sell because they can earn a higher revenue as the price of the widgets keep increasing. This is consistent with the Law of Supply.

Which best describes what happens to the amount of a good or service?

microeconomics. 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 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 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.

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Which needs to happen in order to stop disequilibrium from occurring?

Which needs to happen in order to stop disequilibrium from occurring? The price of the product must go down. If supply for a product is high but demand is low, what most likely needs to happen to achieve equilibrium?

Which statement best describes the impact of scarcity?

Answer. The best sentence to define scarcity is C) Governments must try to meet the wants of citizens. The meaning of scarcity, in general, is to want more than you can have. In this regard, scarcity means to want more and more without an end even when there are limited resources to back up the needs.

Which of the following is the kind of decision that can be made at the margin?

Eco Final

Question Answer
What is the opportunity cost of a decision the most desirable alternative given up for the decision
Which of the following is the kind of decision that can be made at the margin whether or not to hire new workers
What is the factory building an example of physical capital

Which describes a way in which consumers most likely benefit from producers absolute advantage?

Which describes a way in which consumers most likely benefit from producersabsolute advantage? Consumers‘ opportunity costs decrease.

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