Answer to Question #236984 in Economics of Enterprise for Likenaw

Question

Which of the following does not cause an increase in demand? A. An increase in consumer’s incomes. B. An increase in consumers’ preferences for the commodity. C. A reduction in the commodity’s price. D. A reduction in the price of a complementary good. A supply schedule shows the relationship between the quantity supplied over a given period of time and A. Factor prices. B. The price of the commodity. C. Technology. D. The prices of other commodities related in production.

Which of the following statements explains Peak in Business Cycle? A. Total output declines, national income falls, and business generally decline. B. There is an excessive amount of idle productive capacity. C. The economy marks the end of economic expansion and the beginning of recession. D. When expansion of the economy reaches maximum, and the economy once again come to another peak.

Answer 1

1. A. An increase in consumer’s incomes

Consumer's income may increase and he or she decides on taking the substitute product to the immediate product.

2. B. The price of the commodity

Supply schedule indicates relationship between the supplied quantity in a specific time with the good's price.

3. D. When expansion of the economy reaches maximum, and the economy once again come to another peak.