If productivity decreases, the output will shrink with the same amount of resources, and the price of produced goods will growth.In this case the goods from other countries will be cheaper.
The difference between substitute and complimentary is:A substitute is something used instead of a particular good or service, eg. for dinner , if you decide to eat beef instead of...
Producer surplus is an economic measure of the difference between the amount a producer of a good receives and the minimum amount the producer is willing to accept for the...
A private good is both rival and excludable this means that consumption is rival and consumers can be excluded. For instance a can of pineapples is a private good while...
An economic environment relates to those factors that affect the behavior of buyers and sellers. These include factors such as demand, supply, inflation, interest rate, employment, and income levels. Experts...
Barriers to factor mobility in case of domestic trade:• government control on how firms conduct production, distribution • corruption and bribery, which stagnate economy and discourage investment • environmental laws, that affect employment and economic...
X and Y are substitute goods because a decrease in price of X means that consumers will demand more of X .Demand for good Y will decrease because consumers will...
Balance of trade (BOT) is the difference between the value of a country's exports and the value of a country's imports for a given period. An invisible trade is an...
