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.
An example of the founder effect with subsequent adaptive radiation.
Will the sun rise tomorrow? Are you sure? “Cause and effect” vs. sense experience.
Contributions of various His residues to the Bohr effect in hemoglobin
Relationship between Income Inequality and Sociopolitical Instability
Income per Capita versus Total Fertility Rate
Under ideal conditions, a single cell of the bacterium E. coli would divide every 20 minutes to ...