Business, 11.07.2019 11:00 machucagm01

Stone and brick are substitutes in home construction. consider the market for bricks depicted below. suppose the price of stone increases due to new regulations for the stone quarrying industry. illustrate the impact this will have on the market for bricks.

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Answer from: kassandrarosario1115

Price of bricks will increase

Explanation: Since Stone and bricks are substitutes to each other, a rise in the price of stone due to the new regulation will lead to a rise in the demand for bricks. Since bricks are now relatively cheaper as compared to stones after the price rise, people will use more bricks than stones. This will shift the demand for bricks to the right driving upwards the price for bricks and also increase the quantity of bricks being sold in the market.

Answer from: naomicervero

There will be a rise in the quantity demand for brick in the market due to the rise in the price of stone due to new regulations for the stone quarrying industry, and there will be less demand for the stone in the market. As stone and brick are substitute goods.

Further Explanation:

Stone and brick are substitute products. And substitute goods have a direct relation with the demand for one good, and the price of the other substitute. If the price of the stone rises, demand for brick will rise as now brick will be cheaper than the stone.

• The equilibrium price will rise slowly when the demand rises.

• The equilibrium quantity will increase for sure, due to the rise in the price of the stone, the demand or the quantity for brick will rise.

• This situation of the rise in the price of stone will lead to rising in demand for brick, and the demand curve will shift towards upward, and this will increase the quantity of bricks sold in the market due to rise in the price of the substitute good (stone) due to new regulations.

Learn More:

1. Demand and type of goods

2. Economics Elasticity

3. Demand for product

Answer Details:

Grade: High school

Chapter: Demand and supply

Subject: Economics

Keywords: Stone and brick are substitutes in home construction. Consider the market for bricks depicted below. Suppose the price of stone increases due to new regulations for the stone quarrying industry. For the impact, this will have on the market for bricks; substitute goods have a direct relationship with the price of the one product and the demand for the substitute product.

Answer from: Quest

answer; correct answer is investing activity;

Answer from: Quest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

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Stone and brick are substitutes in home construction. consider the market for bricks depicted below....

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