Supply and Demand

Expanding production to benefit from economies of scale.

Decreasing the price of the product.

Raising the price of the product.

Increasing advertising to make demand more elastic.

Lower production costs.

Increase in demand.

Surplus of goods.

Shortage of goods.

It can increase social welfare if it leads to output closer to the socially optimal level.

It reduces social welfare by increasing both consumer surpluses at the expense of producer surplus.

It always decreases social welfare due to higher prices for some consumers.

Social welfare remains unaffected as only distribution between producer and consumer surpluses changes.

The firm can increase the market price.

The firm becomes a monopolist in the market.

The market price remains unchanged.

Other firms will exit the market due to increased competition.

There are significant barriers to entry for new firms.

Firms are price takers with no control over prices.

Product differentiation.

A single seller dominates the market.

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Consumers can have all goods and services they desire without trade-offs.

Scarcity applies only to producers, not consumers.

Consumers must make choices based on limited resources.

Government intervention eliminates scarcity for consumers.

Gym memberships are normal goods

Gym memberships are inferior goods

Gym memberships are Giffen goods

Gym memberships are substitute goods

Reductions in actual sales volume in the current period due to anticipation of tighter margins in the foreseeable future, ultimately contracting the offered transactions space in the opposite direction of the intended movement and outcome desired by the actors involved in the respective marketplace dynamics.

Lower profit margins in cattle farming strengthen incentives to invest in alternative agricultural sectors, hence reduced amounts available for buyers.

No effect is expected as consumer preferences for beef remain unchanged despite the anticipated increase in feed grain prices.

Higher anticipated feed grain prices result in upwards pressure on the cost of producing beef, leading to an upshifted supply and more beef entering the market.

The demand curve shifts leftward.

The supply curve shifts leftward.

The demand curve shifts rightward.

The supply curve shifts rightward.