please answer these questions as soon as possible....

  •  increase in price of substitute goods
  •  fall in price of complementary goods
  •  increase in income of buyer
​​​​​These factors would cause an increase in demand for a commodity.

A balance of payments deficit means when nation imports more commodities, capital and services than it exports. It must take loan from other nations to pay for their imports. A deficit in BOP is reflected by a shortfall of autonomous receipts as against autonomous payments. 

 In Terms of Marginal revenue and Marginal Cost Approach producer strikes his equilibrium (at maximum profit) when two conditions are satisfied i.e. MR = MC AndMC is rising  ( or MC is greater than MR beyond the point of equilibrium output.)Therefore, just the equality between MC and MR are not sufficient to ensure equilibrium.

  • 0
What are you looking for?