Question: Which Of The Following Reasons Explain The High Prices Of Antiques?

Which of the following factors have increased the demand for antiques over time?

Factors such as increased population, higher income, and greater enthusiasm for collecting antiques have increased the demand for antiques over time. Because the supply of antiques is limited and inelastic, those increases in demand have greatly boosted the prices of antiques.

What is the term for the total amount the seller receives from the sale of a product in a particular time period?

demand. indicates the total amount the seller receives from the sale of a product in a particular time period. Total Revenue.

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Which of the following is a determinant of the price elasticity of demand for a product?

The four factors that affect price elasticity of demand are (1) availability of substitutes, (2) if the good is a luxury or a necessity, (3) the proportion of income spent on the good, and (4) how much time has elapsed since the time the price changed. If income elasticity is positive, the good is normal.

What type of demand is represented by a small change in price that leads to a large change in the quantity demanded?

When a product is relatively price inelastic, a large change in price causes a small change in the quantity demanded. The price elasticity of demand is greater than one, namely “elastic”, when price and total revenue change in opposite directions.

Which of the following is the best example of substitute goods?

Butter and margarine are classic examples of substitute goods.” If someone doesn’t have access to a car they can travel by bus or bicycle. Buses or bicycles, therefore, are substitute goods for cars. Substitute goods are two or more products that the consumer can use for the same purpose.

What does Shiftability refer to in economics?

June 2016) In banking, shiftability is an approach to keep banks liquid by supporting the shifting of assets. When a bank is short of ready money, it is able to sell or repo its assets to a more liquid bank.

What is the price elasticity of supply Can you explain it in your own words?

Definition: Price elasticity of supply is an economic measurement that calculates how closely the price of a product or service is related to the quantity supplied. In other words, it shows how a change in price will affect suppliers’ willingness to produce the good or service.

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What is the price elasticity of demand can you explain it in your own words?

Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded—or supplied—divided by the percentage change in price.

What is an example of quantity demanded?

An Example of Quantity Demanded Say, for example, at the price of $5 per hot dog, consumers buy two hot dogs per day; the quantity demanded is two. If vendors decide to increase the price of a hot dog to $6, then consumers only purchase one hot dog per day.

Which determinant is the most important?

The most important determinant of consumer spending is disposable income. If consumers have more income, they will spend more, and aggregate demand will increase. When the economy slows down and consumers have less disposable income, they will spend less, and aggregate demand decreases.

What three factors determine the demand for a product?

The demand for a product will be influenced by several factors:

  • Price. Usually viewed as the most important factor that affects demand.
  • Income levels.
  • Consumer tastes and preferences.
  • Competition.
  • Fashions.

What are price determinants?

There are many factors influencing pricing decisions. The common ones are group into four as follows: customers, competitors, the quality of the product, product costs, as well as profit maximization.

What is the difference between change in demand and change in quantity demanded?

A change in demand means that the entire demand curve shifts either left or right. A change in quantity demanded refers to a movement along the demand curve, which is caused only by a chance in price.

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What is the relationship between price and quantity demanded?

The law of demand states that a higher price leads to a lower quantity demanded and that a lower price leads to a higher quantity demanded. Demand curves and demand schedules are tools used to summarize the relationship between quantity demanded and price.

What is the percentage change in quantity demanded?

Price elasticity is the ratio between the percentage change in the quantity demanded (Qd) or supplied (Qs) and the corresponding percent change in price. The price elasticity of demand is the percentage change in the quantity demanded of a good or service divided by the percentage change in the price.

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