10. Which of the following statements about OPEC and the oil market during the 1970s and 1980s is (are)correct?(x) Over the long run consumers responded to higher gasoline prices with greater conservation of gasolineand as a result the demand for OPEC products became less elastic.(y) OPEC successfully raised the world price of oil in the 1970s and early 1980s primarily due to an inelasticdemand for oil and a reduction in the amount of oil supplied.(z) OPEC could not successfully keep the price of oil high over the long run, because producers of oiloutside of OPEC responded to the high price by increasing oil exploration and extraction capacity.A. (x), (y) and (z)B.(x) and (y) only(x) and (z) onlyD(y) and (z) onlyЕ.(y) only

OPEC stands for Organisation of Petroleum Exporting Countries . It is the exmaple of biggest cartel…

10. Which of the following statements about OPEC and the oil market during the 1970s and 1980s is (are) correct? (x) Over the long run consumers responded to higher gasoline prices with greater conservation of gasoline and as a result the demand for OPEC products became less elastic. (y) OPEC successfully raised the world price of oil in the 197Os and early 1980s primarily due to an inelastic demand for oil and a reduction in the amount of oil supplied. (z) OPEC could not successfully keep the price of oil high over the long run, because producers of oil outside of OPEC responded to the high price by increasing oil exploration and extraction capacity. А. (x), (y) and (z) В. (x) and (y) only С. (x) and (z) only D. (y) and (z) only E. (y) only

10. Which of the following statements about OPEC and the oil market during the 1970s and 1980s is (are) correct? (x) Over the long run consumers responded to higher gasoline prices with greater conservation of gasoline and as a result the demand for OPEC products became less elastic. (y) OPEC successfully raised the world price of oil in the 197Os and early 1980s primarily due to an inelastic demand for oil and a reduction in the amount of oil supplied. (z) OPEC could not successfully keep the price of oil high over the long run, because producers of oil outside of OPEC responded to the high price by increasing oil exploration and extraction capacity. А. (x), (y) and (z) В. (x) and (y) only С. (x) and (z) only D. (y) and (z) only E. (y) only

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Elasticity

Section: Chapter Questions

Problem 11QP: Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price...

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Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price for wheat and a price 2 higher per bushel. Do you think that farmers collectively would try to reduce the supply of wheat and drive the price up 2 higher per bushel? Explain your answer. Assuming that they would try to reduce supply, what problems might they have in actually doing so?
1. Caribbean economies tend to rely heavily on the Tourism sector, offering Sun, Sea andSand as the “tourism product” for which tourists purchase hotel accommodationsto enjoy. Hoteliers offer these services and are therefore major “suppliers” in thismarket.In 2017 however, several natural disasters affected the Caribbean, resulting ineconomic, environmental and human losses. In order to analyze the impact ofthese Natural Disasters on the hotel industry, answer the following questions. a. With the use of an appropriate demand and supply diagram for hotel rooms(accommodation), illustrate and explain how the news of an impending Tropical Stormto the Caribbean region would affect the market price (hotel rates) and quantity tradedof hotel rooms.b. Following the destruction of hotel infrastructure from the passage of the Hurricanes, usean appropriate demand and supply diagram for hotel rooms (accommodations) toillustrate and explain the impact of the Hurricanes on the market price and…
6. Which of the following will shift the supply curve of shade-grown, organic coffee to the right? a) An increase in the price of commercially grown coffee. b) An increase in the cost of land suitable for growing shade-grown, organic coffee. c) The expectation of falling prices in the future for shade-grown, organic coffee. d ) An increase in the number of farmers with the skills necessary to grow shade-grown, organic coffee. e) All of the above . None of the above.
2. Suppose General Electric, one of the largest suppliers of light bulbs, decides to discontinue its production of light bulbs. SELECTED THE CORRECT ANSWER a. Which of the following will occur in the market for light bulbs? -demand will increase -supply will decrease -demand will decrease -supply will increase b. Will General Electric's exit from the light bulb market result in a shortage or surplus of light bulbs at the previous price? Will the price of light bulbs _rise or fall? _shortage, fall _surplus, rise _shortage, rise _surplus, fall
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Johnson's Household Products has a division that produces two types of toothpaste: a regular toothpaste and a whitening tooth paste. The demand equations that relate the prices, p and q (in dollars per thousand units), to the quantities demanded weekly, x and y (in units of a thousand), of the regular toothpaste and the whitening toothpaste are given by p=3000-20 x-10 yp=3000−20x−10y and q=4000-10 x-30 yq=4000−10x−30y respectively. The fixed cost attributed to the division is $20,000/week, and the cost for producing 1000 tubes of regular and 1000 tubes of whitening toothpaste is$400 and $500, respectively. a. What is the weekly total revenue function R(x, y)? b. What is the weekly total cost function C(x, y)? c. What is the weekly profit function P(x, y)? d. How many tubes of regular and whitening toothpaste should be produced weekly to maximize the division's profit? What is the maximum weekly profit?
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Suppose that the demand and supply schedules for raisins in South Carolina are as fallows, quantitiesare measured in millions of packs per month. What is the quantity of raisins bought if the price is 50cents ? Price (cents per pack) Quantity demanded20 18030 16040 14050 12060 10070 8080 60 a) 120b) 180c) 100