The negative incentive will cause consumers to purchase less of a good or service if it is of lower quality
possibly that consumer will reduce the demand of that good or service as compared to he use to demand before. There is a term used for this fluctuation called ELASTICITY OF DEMAND ( it refers to the degree of responsiveness of demand to change in the price of a commodity)
The negative incentive will cause consumers to purchase less of a good or service if it is of lower quality
[object Object]
true
Quantity Demanded is only affected by the change in prices & all other factors given below only affect or lay down changes in Demand2. taste/preference of consumers; the higher the pereference for a particular goods/service the higher the qd for the goods/service; the lower the preference the lower the qd of the goods/service3. deposable income (dy) of consumers; the higher the dy of consumers the higher the qd of goods/services; the lower the yd the lower the qd of goods/services4. population. the more the population the higher the qd for goods/services; the lower the population the lower the qd for goods/services5. price of complimentary goods/services; the higher the price of complimentary goods the lower the demand for the main goods; the lower the price of the complimentary goods/service the higher the demmand for the main goods/service.by;Zain-Ul-abideen email. Zain-Ul-abideen@hotmail.com
Because if you don't offer a better product or better service or a lower price for a same service, you will not get customers. So you have to beat the opposition. In a controlled, or none-free market there is no incentive to do better.
The negative incentive will cause consumers to purchase less of a good or service if it is of lower quality
The negative incentive will cause consumers to purchase less of a good or service if it is of lower quality
What was a price incentive
[object Object]
true
Quantity Demanded is only affected by the change in prices & all other factors given below only affect or lay down changes in Demand2. taste/preference of consumers; the higher the pereference for a particular goods/service the higher the qd for the goods/service; the lower the preference the lower the qd of the goods/service3. deposable income (dy) of consumers; the higher the dy of consumers the higher the qd of goods/services; the lower the yd the lower the qd of goods/services4. population. the more the population the higher the qd for goods/services; the lower the population the lower the qd for goods/services5. price of complimentary goods/services; the higher the price of complimentary goods the lower the demand for the main goods; the lower the price of the complimentary goods/service the higher the demmand for the main goods/service.by;Zain-Ul-abideen email. Zain-Ul-abideen@hotmail.com
Because if you don't offer a better product or better service or a lower price for a same service, you will not get customers. So you have to beat the opposition. In a controlled, or none-free market there is no incentive to do better.
supply
Demand
Consumers have inelastic demand
This is when consumers and producers respond to information( signalling) and incentive provided by the prices then scarce resources will be rationed between competing uses
Consumers will buy more of a good when its price is lower and less when its price is higher.