Purchase Solution

Implication of demand of law

Not what you're looking for?

Ask Custom Question

Your are the chief economic advisor to the King of Terra. The king has observed that while the price of energy has increased 20 percent over the past five years, consumers have actually increased their energy consumption by 10 percent over the same period. It has been suggested to the King by a rival advisor that this proves that the laws of supply and demand are incapable of explaining events in the real world. Do you agree? Explain fully.

Purchase this Solution
Solution Summary

The solution discusses the various reasons for rise in energy consumption despite the hike in energy prices over the years.

Solution Preview

Solution :

Law of demand say as the price of a good or service increases, its demand decreases.

This principal assumes that other factors like average income of people, taste and preferences, population, prices of related goods, future expectation etc remains unchanged ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
Recent Feedback
  • "Thank you"
  • "Really great step by step solution"
  • "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
  • "Thanks Again! This is totally a great service!"
  • "Thank you so much for your help!"
Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Ethics and accountability in job descriptions

    The ethical implication of this is that, it is illegal as well as unjust to deny any citizen of their constitutionally protected rights.

  • Employment law: FMLA, OSHA, employers' responsibilities

    Application and Implication of the FMLA Law for the Employee The FMLA law applies to the "eligible" employee with the following stipulations: 1) Employee has to be employed for at least 12 months and worked at least1,250 hours.

  • Critical legal analysis of the law

    The implication is that there are varied approaches with no single correct result. That does not mean that law is unpredictable.

  • Stare decisis and healthcare

    165842 Describe beneficial effects to our system of law gained from the principle of stare decisis. Describe beneficial effects to our system of law gained from the principle of stare decisis. ? Why is law not an exact science? ?

  • The implication of a government budget surplus

    The implication of a government budget surplus is determined.

  • Employee Safety and Welfare Laws & Regulation

    375270 Employee Safety, Health, and Welfare Law Paper Explain the application and implication of the following laws for your employer.

  • Bankruptcy as a Strategic Financial Tool

    The bankruptcy law is being abused by companies to run away from paying benefits of their employees.

  • Volume to Value Healthcare

    The total demand for health care has been growing steadily. Also, there has been a shortage of high quality health care in the market. The demand is higher than the supply and this has pushed the prices of health care.

  • investment banks

    This is part of why the investment banks can demand more of their employees. Another reason investment banking is demanding is that a large portion of total compensation comes from a discretionary annual bonus.

View More Related Solutions