Dhouha Brahim
Answers :
1. Law of demand: lower price → higher quantity demanded; higher price → lower quantity demanded (income and substitution effects).
2. Higher income, population growth, stronger preferences, higher prices of substitutes, lower prices of complements, expectations of higher future prices/income.
3. Higher prices increase profitability and rising marginal costs require higher prices to supply more.
4. Higher input costs, higher taxes/regulation, lower technology, fewer sellers, higher prices of alternative goods, expectations of higher future prices.
Answers :
1. Law of demand: lower price → higher quantity demanded; higher price → lower quantity demanded (income and substitution effects).
2. Higher income, population growth, stronger preferences, higher prices of substitutes, lower prices of complements, expectations of higher future prices/income.
3. Higher prices increase profitability and rising marginal costs require higher prices to supply more.
4. Higher input costs, higher taxes/regulation, lower technology, fewer sellers, higher prices of alternative goods, expectations of higher future prices.