In Each of the Following Situations, List What Will Happen

question 239

Essay

In each of the following situations, list what will happen to the equilibrium price and the equilibrium quantity for a particular product, which is a normal good.
a.The population increases and the price of inputs increase.
b.The price of a complement increases and technology advances.
c.The number of firms in the market increases and income increases.
d.Price is expected to increase in the future.
e.Consumer preference increases and the price of a substitute in production decreases.

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Definitions:

NPV

Net Present Value; a calculation used to determine the present value of an investment's cash inflows and outflows over a period, assessing its profitability.

WACC

This calculation, known as the Weighted Average Cost of Capital, quantifies a company's cost of capital by proportionately weighting each type of capital it uses.

WACC

The Weighted Average Cost of Capital identifies the cost of a company's capital by weighting each capital category in proportion to its significance.

NPV

Net Present Value, a method used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.