Microeconomics: Principles for a Changing World
Microeconomics: Principles for a Changing World
4th Edition
ISBN: 9781464186677
Author: Eric Chiang
Publisher: Worth Publishers
Question
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Chapter 3, Problem 1QP
To determine

Information other than price that are available through the product price.

Expert Solution & Answer
Check Mark

Explanation of Solution

Price of a product provides more information regarding the product. The important information are the availability of unit quantity of a product for its unit price or demand for that product in the market. Also, the price provides a comparative study about the price of another product in the market it may be a substitute good or others.

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An increase of 20 million bicycles demand as a result of a lower p
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. What the heck is this GDP thingy? It is Thursday afternoon, just a few days before the holiday season starts in your region, and you decided to visit your uncle Chao who owns a local delivery company. While sitting in the living room watching the evening news with your uncle, you heard the news reporter stating the following with an optimistic tone: "According to recent studies, gross domestic product (GDP) is rising due to an increase in consumer spending. The increase in spending was due to an increase in consumer confidence because the job market has shown a positive increase in both employment and income." Immediately, your uncle Chao looked at you with some confusion on his face and asked: What the heck is GDP, and why does the news dude seem excited about its increase? Does this “good” change in this GDP thingy have any effect on my delivery business? How? Do I need to do something different to prepare for the rise in GDP? How?
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