Why does the law of demand only function in a free market economy?
Because only in a free market (with or without taxes/subsidies and with or without price ceilings/floors/administratively fixed prices)) consumers and purchasers have freedom to choose as per their preferences and budget capacities: all other economies keep consumers and purchasers (as well as producers) under the bondage of the economy administrators appointed by dictatorial/ socialist leaders who run the economies as per their whims while telling people that they do what they think best for each consumer, purchaser, supplier and seller. Law of demand is a natural law: it operates in natural environments and the question of its operating in artifical. controlled environments does not arise. The demand law remains valid under all circumstances : only in the freemarket it can express itself - in govt. controlled / dictated economies the consumers are denied the opportunity to make their choices and hence demand law is simply ignored and prohibited from expressing itself in the open markets and where possible expresses itself through black (unofficial, banned) makets.
Econ question...If market supply for a good increases...?
a) Will consumer surplus either increase, decrease, remain the same, or unknown b) Will producer surplus either increase, decrease, remain the same, or unknown Answer and I will choose a best answer. I know how annoying it is for people to not choose.
The term "mercantilism" is defined as an economic system in which...?
The correct answer is B. India, United States, Brazil and many other colonies suffered a lot with this system. Those countries were considered burgains in the view of their colonizers and because of the fact that they were building schools and railroads in the colony(to transport raw materials) they thought to have the right of taking any natural resource from the colony.
Help with Macroeconomics Homework...?
I'm home schooled and am having trouble figuring a couple of questions out regarding Aggregate Supply and Demand. If you could help me answer them, and explain the graphs to me, I would really appreciate it. 1) A new law requiring all businesses to provide health care for their employees is signed by the President. Show and explain the impact of this law on output and price level. 2) Congress passes a sweeping health care reform bill that provides free medical insurance for all Americans. Once the President signs it into law, the government will provide every American with a policy that will pay up to 80% of every medical bill a patient incurs. Show and explain the impact of this law on output and price level. 3) Assume that over the next ten years, the level of educational attainment in the US increases significantly. Show and explain the impact of this change on output and price level in the economy. 4) In an effort to provide tax relief for households while still balancing the budget, Congress votes to raise business taxes and decrease personal taxes. Show and explain the impact of these tax decreases on output and price level. Thanks