economic comment

Question 1 Ans 1

Utility or the willingness to buy is a function of price elasticity The reaction of people is dependent not only on the price but their willingness to buy said good . When demand is perfectly elastic , the changes in price are directly related to changes in demand

Ans 2

On the supply side , technology , time of year and labor factor big in the amount of supply of a certain commodity . The shifts along the supply curve are directly related to these factors and correspondingly they are related to

the demand curve prices . When a technology causes the production of more items , it results in being able to sell more items thus lowering the price of a good because of the existing surplus

Ans 3

The existence of alternatives and income also affect supply and demand When there are substitutes , there are choices that exist for the allocation of one 's money . Likewise , if there is no money , a person is forced to find substitutes and alternatives to fill a certain want or need

Question 2 Ans 1

Government intervention has always been regarded differently . In economics , there are those who argue that the government should not intervene in the market . The regulations that the government imposes on trade and on securities are designed to bring positive growth to the economy but have also been known to cause bigger problems in certain cases

Ans 2

Government involvement in the free market can take many forms . By directly affecting...