And even a child will become clear that increasing the number of units of money per unit at a constant the money supply would reduce the amount of purchased goods. As itself effective demand is the quotient of the total PD at the unit price: to sleep = DD / DH. (5) Conversely, reducing the amount of money per unit leads to an increase in demand for goods. In both cases, the addiction – the reverse. When they take demand as an argument, and see price function, in this case, they implicitly suggest that the PD does not remain constant, but increases or decreases. If the PD is growing, it is clear that the price will rise.
For on the same set of goods will account for more amount of money. Proceedings of goods will increase, and sellers (quirky people!) Will not hesitate to raise prices. The dependence of prices on demand – direct. Because I demand depends on the PD is directly proportional. When the PD is going down, and the price decreases. So as a reduced set of money allocated for a given quantity of goods.
Their rate of sales is falling, and sellers are forced to reduce prices to sell them. Although, of course, can not be so categorical, as McConnell and Brue. Vendors may hide the goods, to avoid falling prices. Simply, here the various cases of the behavior of price functions, the analysis of which was given in my “Theories of the price of goods.