Instruction: Be brief, clear and consistent. Avoid verbosity. Explain briefly ho
ID: 1229181 • Letter: I
Question
Instruction: Be brief, clear and consistent. Avoid verbosity. Explain briefly how the market price id being determined. Government program sending doctors in to reduce infant mortality direct most of the doctors to poorer neighborhoods. Explain how it is that both can be said to be obeying the "law of downward sloping demand", even though they move toward opposite ends of the income distribution. Many experts recommend that people get at least 30 minutes at vigorous exercise three to five times a week; the actual participation in exercise less than the amount (a) needed or (b) demanded. Why do most college students get more exercise in the summer than the rainy season? Does need, demand, or differences in opportunity most time account for the fact that most actors get more exercise than most accountants. Why is it that the price of labor in the urban sector is higher compared in the rural sector? Why is it that the law of demand and supply is a universal law? ANSWER:Explanation / Answer
1.prices are determined by force of market demand and supply
Supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers (at current price) will equal the quantity supplied by producers (at current price), resulting in an economic equilibrium of price and quantity.
The four basic laws of supply and demand are:
If demand increases and supply remains unchanged, then it leads to higher equilibrium price and quantity.
If demand decreases and supply remains unchanged, then it leads to lower equilibrium price and quantity.
If supply increases and demand remains unchanged, then it leads to lower equilibrium price and higher quantity.
If supply decreases and demand remains unchanged, then it leads to higher price and lower quantity.
4.why is it that price of labour in urban sector is higher compared in the rural sector
In general, the the urban sector in our economy is more educated and many more white collar jobs. A lot of corporate headquarters of some of this country's major corporations have headquarters or home offices as well as major branches in large urban areas like New York, Chicago and Los Angeles. These headquarters are the offices of major CEO's {Chief Executive Officers} such as Chairmans of the Board, Presidents and Vice Presidents. Thes CEO's are the highest paid executives in the country and the world.
When these salaries are averaged in with other top executives that work under them; they far excede the price of labor in the rural sector. The rural sectore normally refers to the Agricultural or farming industries and in general, the cost of labor in the rural sector does not come close to the cost of the urban sector. A lot of times in the rural or Agriculture sector the ownership and operation of a farm is passed on to relatives who grew up on a farm and a formal education isn't required since they have learned how to own and operate the farm while working on it as they grew up.
Finally, the cost of living is usually much higher in the urban sector than the rural sector. Because of this, the price of labor demands higher wages and salaries in order to maintain their subsistance level.
Real Estate is much higher priced, the cost of gasoline is higher and even groceries and restaurants are higher priced. Also, many times, these more educated laborers with college degrees demand higher pay. Since a lot of these urban jobs require this higher education to get an urban job--the employer is forced to pay the higher wages and salaries.