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Explain How It Would Be Possible for the Equilibrium Price

question 174

Essay

Explain how it would be possible for the equilibrium price and equilibrium quantity to both increase in the market for motorcycles if consumer preference for motorcycles increases and the number of motorcycle manufacturers decreases.


Definitions:

Nominal Interest Rate

The stated rate of interest on a loan or financial investment, not adjusted for inflation.

Real Rate Of Interest

The rate of interest an investor expects to receive after allowing for inflation.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, indicating the health of an economy.

Labor Force

The aggregate sum of individuals working or in pursuit of work within a nation or area.

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