# Tag Info

Accepted

### Is an "arms race" between wages and inflation inevitable?

How true is the original assertion? The original assertion is poorly worded and not generally valid even if we ignore the wording. The assertion (at least a corrected version of it) can be true under ...
• 57.2k

### Is an "arms race" between wages and inflation inevitable?

Then a sizeable proportion of employers would need to do this to make a difference. If we take the statement literally that it's talking about just one employer, rather than the effect in general of ...

### Is an "arms race" between wages and inflation inevitable?

As the 1muflon1 answer states the best argument you are already making is that single employer committing to such policy does not matter. This would not necessarily be true if every employer would try ...
• 641

### How price is determined in the following monopoly model question?

So far so good for part (a). The basic idea for part (b), is that if the parking lot goes first to set the price first, the store is going to have to allow the costumers to get at least enough ...
• 31
Accepted

### Why doesn't it matter, whether you draw Demand and Supply Curves as arcs, or straight lines?

It doesn’t matter if you are just demonstrating some simple concept such as shift of demand or supply curve as in pictures above, because as long as the supply and demand are continuous and at ...
• 57.2k

### How does artificial scarcity benefit the seller?

First it is not appropriate to call it scarcity or artificial scarcity, since in economics that term has special technical meaning. Better term would be output/supply restriction. Restricting output ...
• 57.2k

### Why does supply (and demand) shift left and right as opposed to up and down?

The supply curve is defined by a function $Q_{S} = a + bP$. When plotting on a price-quantity graph, we have to invert the function: $P = -\frac{a}{b} + \frac{Q_{S}}{b}$. We set $Q_{S}=0$ to get the y-...
• 21

• 57.2k
1 vote
Accepted

### About the basics in marginal benefit

My lecturer said that it is also the maximum willingness to pay for an extra unit of good. Why so? This comes just from the definition. E.g. if my marginal benefit of one extra bottle of milk is 2e I ...
• 57.2k
1 vote

### Current House Demand and Supply

Considering basic supply and demand theory, as demand increases prices rise from competition; there is less to go around per person. The demand drives up the prices not the other way around. ...

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