Question

Firms A and B uses different combinations of inputs (Steel and Leather) to produce an output. The output is priced at Rs. 100 and Rs. 200 for
sector A and B respectively. The input combination is given below.
Firms Steel Leather Final Demand Total
A 15 20 45 ?
B 05 20 15 ?
When the price fall to Rs 80 and Rs. 150, there is a change in final demand i.e. 65 and 25 respectively. Find out the required output to meet the
increase in demand. Also write in details the relationship between demand and price and represent the relationship with the help of a demand
curve. Hint: it can be positive or negative relation.

Answer 1

Factories A and B use different combinations of inputs (Metal and Leather) to produce output and output is worth Rs. 100 and Rs. 200 for categories A and B respectively are:

• Industrial items include raw materials such as steel, coal and limestone, as well as labor, money, space and other infrastructure.
• The process of converting metal into metal involves many stages.
• The raw material is placed in a furnace where it melts.
• The company sells 100 units of certain goods for Rs. 10 each.
• If you could count the company's earnings, the answer is simple - Rs. 1,000 (100 x 10).
• Total shoe price = price + VAT = 175 + 12.25 = Rs 187.25.
• Swarna paid Rs. 20 as VAT for a pair of shoes that cost Rs. 250.
• If the decrease in demand is greater than the increase in supply, the related curve of the desired curve is equally higher than the supply break.
• Effectively, both the price range and the price decrease.
• Price is set on vertical axis (Y) while value is set on horizontal axis (X).
• The demand curves are used to determine the relationship between price and price, and to follow the law of demand, which states that the required price will decrease as the price increases.