P1 is the price level that yields a [...] to the business that supplies the item.
When demand increases from Demand1 to Demand2, price rises to P2, where at this higher price level [...] is created.
The firm has not done anything to get it: It benefits from an increase in demand in conjunction with a supply curve that does not fully adjust with an increase in quantity when price rises.
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Economic rent ng the resource or good onto the market and sustain its use . Demand determines the price level and the magnitude of economic rent that is coming from the market.
Exhibit 1 shows it.
P 1 is the price level that yields a <span>normal profit to the business that supplies the item.
When demand increases from Demand 1 to Demand 2 , price rises to P 2 , where at this higher price level economic rent is created.
last interval [days]
repetition number in this series
scheduled repetition interval
last repetition or drill
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