Purchase Solution

Does One Market Down Mean More Demand from Other Companies?

Not what you're looking for?

Ask Custom Question

Given that the economy grows (is allowed to grow) through the banking system and the creation of money through lending, if one market is down (i.e people are spending more on other goods) are we to assume that these other companies that are facing increased demand will borrow enough (to expand) to counter balance the amount the depressed market would have borrowed - to bring in more money into the economy?

Many thanks.

Purchase this Solution

Solution Summary

The expert determines if one market down means more demand from other companies.

Solution Preview

There are two main concepts to make note of.
Firstly, it must be noted that in most economies it can be readily assumed that they are inter-related in many ways. This suggests the implication that if one sector is doing well, then it will run off into other sectors, although this is often subjective on other things such as trends in the market. For example even if the IT market is oding well it does not necessarily mean that the market for sports ...

Purchase this Solution


Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

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.

Economic Issues and Concepts

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

Elementary Microeconomics

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