Answer to Question 1
Ceteris paribus, the income effect of a price decrease increases the opportunity to buy more of all goods, whereas the substitution effect of a price decrease makes the good become relatively cheaper. In the case of a price increase, the income effect reduces the opportunity to buy all goods, whereas the substitution effect makes the good become relatively more expensive.
Answer to Question 2
The firm should continue to produce in the short run but exit in the long-run if it expects economic losses to continue.
The greenhouse effect: heat trapping by earth's atmosphere.
Climatic cause and effect linkages
Cultures Ideal Body Types
Demographic change and the effect on people social, and economic life
Relationship between Latitude and Income per Capita
Under ideal conditions, a single cell of the bacterium E. coli would divide every 20 minutes to ...