Explain what is meant by the term an Economic model
View Paper
ESSAY DETAILS
Words: 1275
Pages: 5
(approximately 235 words/page)
Pages: 5
(approximately 235 words/page)
Essay Database > Literature > English
…
showed first 75 words of 1275 total
Sign up for EssayTask and enjoy a huge collection of student essays, term papers and research papers. Improve your grade with our unique database!
showed first 75 words of 1275 total
showed last 75 words of 1275 total
…supply curve, indicating a contraction in quantity supplied. The point at which the curves cross changes and a new equilibrium price is set. Less is supplied and demanded at the lower equilibrium price. Output decreases at any given price. These explanations assume ceteris paribus, that the relationship between real disposable income and quantity demanded/supplied is directly proportional. The models are also generalised and do not account for inferior goods for which demand is inelastic.
…supply curve, indicating a contraction in quantity supplied. The point at which the curves cross changes and a new equilibrium price is set. Less is supplied and demanded at the lower equilibrium price. Output decreases at any given price. These explanations assume ceteris paribus, that the relationship between real disposable income and quantity demanded/supplied is directly proportional. The models are also generalised and do not account for inferior goods for which demand is inelastic.
