This will also reduce the labor involved which increase the amount of money the

This will also reduce the labor involved which

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gas cheaper because a new technology arises there will be more efficient ways to create oil. This will also reduce the labor involved which increase the amount of money the company has and ultimately use that left-over money to create more gas in result increasing the supply of gas. Number of Sellers : The number of sellers will probably stay the same because well established companies can adjust to change better then newer competing companies. Question 2-1 Self interest helps society because when a person acts in their own self interest will make society wealthier. As they look out for them selves and seek their own ways to make money they also provide a benefit to society. This self-capitalism will benefit the economy with a factor of different reason. The first reason is it brings new technology and ideas that will help other
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companies grow. Another thing is that this increase helps provide more jobs for the people and the consumers have more of a variety to choose from. Question 2-2 Entrepreneurs and businesses are at the helm of the economy because they are always seeking to maximize profits, and meeting the demands of the consumers, which in result helps the economy. This is seen in the circular flow model because as businesses create services and goods in exchange for their dollar vote. This also results in trading of labor and resources making businesses and people having a beneficial relationship. This self-interests by companies can help increase the economy and society benefits by creating more jobs and market. Question 3-1 Equilibrium in economics is when where the demand and supply slope meet. It is advantageous for the market price to be an equilibrium because there is a balance, not to high and not too low. This offers the market to not have a surplus when demand is low, and supply is high and this also a shortage when the demand is high, and the supply is low. Price ceilings are set by market forces such as supply and demand. The result of the price ceiling being too high is ineffective or low is ineffective. For a price ceiling to work it must be above the equilibrium. When the price ceiling goes below this
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equilibrium it becomes a problem. A price floor is when the government imposes or limits the price of items. Price floors become a problem when they are set below the equilibrium. For the price floor to be effective it must be higher that the equilibrium. Question 3-2 The rent prices soring up in the Los Angeles area is due to a few factors. One of the contributing factors to this soring in price is that the supply of houses is minimal or going up very slightly while the demand keeps rising. This results in the price of houses and rent prices going up because people need houses and their demands are not meet from a supply perspective. The rent in my local area has seen an increase in the past five years. The reason to this increase is the increasing rarity to find apartments in the area because of the growing population. House prices have also gone up because the Los Angeles area is running out of land to build newer houses causing the house prices to increase dramatically.
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