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In Each Case Below,indicate the Effect [Increase (+);Decrease (-);Indeterminate (Ind)]

question 51

Essay

In each case below,indicate the effect [increase (+);decrease (-);indeterminate (ind)] upon equilibrium price (P)and equilibrium quantity (Q)and illustrate the change graphically.Where you believe the effect is indeterminate,two graphical illustrations may be necessary to demonstrate your point.


Definitions:

Average Product

The Average Product is an economic term that describes the output per unit of input, calculated by dividing total product by the number of units of input.

Diminishing Returns

The principle where the increase in the quantity of input will, after a certain point, yield progressively smaller increases in output.

Costs Of Production

The total expenses incurred in the manufacturing of a product, including raw materials, labor, and overhead.

Input Prices

The costs or expenses incurred in acquiring the raw materials and services needed to produce a product.

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