13. The inelasticity of demand for gasoline in the short run makes no theoretical sense. b. makes sense because there are very few substitutes. makes little sense because there are very few substitutes. is more pronounced in the long run. a. с. d.
Q: A firm should shut down in the short run if it is not covering its
A: To find : When should firm shut down.
Q: (KEY QUESTION) Consider the following strategic interaction between two Australia telecommuncation c...
A: In many problems, decision-making is required in a competitive situation where there are two or more...
Q: Which of the following refers to the interest payments of the bond? * A. Coupon Bond B. Present Val...
A: Interest is defined as the payment made by the borrower to the lender for loans. It can be referred ...
Q: 67. Consumption Expenditures In Keynesian macroeconomic theory, total consump- tion expenditure on g...
A:
Q: Suppose that today the market for homes is in equilibrium. Tomorrow both the supply and demand curve...
A: Supply and demand curves for homes will shift to the right indicating an increase in demand and supp...
Q: titution offect and income effect to c
A: As per the question when there is any demand curve vertically straight this implies the commodity to...
Q: Simple interest of P1,235 is owed on a loan of P9,500 from January 2, 2016 to November 15, 2016. Wha...
A: Simple interest (SI) = PxRxT100
Q: 3 Explain how economies of scale can be a barrier to entry.
A: Barriers to entry is an economics and business term describing factors that will stop or impede newc...
Q: Which of the following would be most likely to increase consumption spending? Select an answer and s...
A:
Q: 4) Suppose that we have the following data for Amazon operations in the US: Sales $469.8B $365.6B Co...
A: In the mentioned question we have been asked about the gross domestic production and its calculation...
Q: The formal study of economics began when Adam Smith (1723-1790) published his famous book The Wealth...
A: Adam Smith otherwise called father of financial aspects distributed his book The enquiry into The na...
Q: Is this game dominance solvable? Why? Why not? If it is, please find the Nash equilibrium obtained t...
A:
Q: Octopus has 5RL (Right Legs) and 3LL (Left legs) Will only wear matching shoes on all 8 legs Ut...
A:
Q: A firm produces at an output level where the marginal product of labor (MPL) is 50 units and the mar...
A: A firm either maximizes profit or minimizes cost and hence it follows that any firm should follow th...
Q: Define externality. Also explain negative and positive externality.
A: Externalities occur when the production or consumption of a good has an impact on third parties who ...
Q: Suppose that a person's yearly income is $60,000. Also suppose that this person's money demand funct...
A: Y=$60,000 Md= $Y(0.35-i) Interest rate= 15%
Q: s this tax progressive regressive or pronortional?
A: As per the question 5% sales tax is levied on the consumption level of the consumer which implies th...
Q: Assume the following consumption schedule: C=20+0.9Y, where C is consumption and Y is disposable inc...
A: The given consumption schedule is C=20+0.9Y Where C= Consumption Y is the disposable income The aut...
Q: ). Union leaders are in better position to bargain for higher wages if demand for labour is
A: To find : When do uniob leaders are in better position to bargain for wages.
Q: Nominal interest rates differ from real interest rates in that real interest rates are expressed in ...
A: Real interest rate refers to the nominal interest rate that is adjusted for inflation.
Q: In the long run, currency exchange rates are considered to be determined by _ In the short run, exch...
A: The rate that depicts the value of one currency that is being measured in terms of another currency ...
Q: Perfect competition is an extremely rare type of market in the real world. This is because the condi...
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts fo...
Q: A hardware retailer found that, during the months of May, June and July, sales of patio furniture in...
A: A relationship between two events in which one event is the cause of the other is referred to as cau...
Q: Problem 3. 3a. In the Newsvendor problem that we discussed in the lectures, if the cost of excess ...
A: Problem 3 3a) Its answer is true In the newsvendor problem if the holding cost increases then the cr...
Q: Government levied a tax on good D. The elasticity of the supply changed without changing the no-tax ...
A: Relationship between elasticity and tax incidence: Whenever a tax is imposed in a market, it places ...
Q: An exchange rate crisis occurs when the peg (the fixed exchange rate) loses its credibility. Bond ho...
A: The fixed exchange rate is the rate that is determined by the government. It means as the government...
Q: Suppose that a person's wealth is $50,000 and that her yearly income is $60,000. Also suppose that h...
A: (a) Wealth = Money demand + Bond demand => $50,000 = Md + Bd => Bd = $50,000 - Md => Bd =$5...
Q: how price system affects the Industries pricing products and Services
A: Elasticity of demand and elasticity of supply are two things that affect the pricing for goods and s...
Q: Suppose that the economy is characterized by the following behavioral equations: C= 150 +0.90YD J= 1...
A: Here, given information is: C=150+0.90YD I=130 G=150 T=90 Using the given information, one can cal...
Q: 1.Explain the relationship between PPF and supply curve?
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new ques...
Q: If a country's domestic price of lumber is below the world price of lumber, the country will likely:...
A: Outflow of goods and services from one country to rest of world, is known as the export.
Q: Octopus has 5RL (Right Legs) and 3LL (Left legs) Will only wear matching shoes on all 8 legs Ut...
A: The optimal consumption bundle is at the point of tangency between the indifference curve and the bu...
Q: Christ Embassy Complete te hallowing coA schedules LOutPutiobal costAverage coA Marginal cost LCA CH...
A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for yo...
Q: Directions: Using the table below, calculate the following requirements: 1. Growth rates of each nat...
A: Gross domestic product refers to the total market value of final goods and services that are produce...
Q: SMES ARE A MAJOR SOURCE OF TECHNOLOGICAL INNOVATION AND NEW PRODUCTS. a. True. O b. False.
A: When some quantities of product is manufactured, cost takes place and process of business follow up...
Q: Jake buys a used Harley-Davidson motorcycle for $2,500. He spends an additional $950 installing bran...
A: Cost of used bike = $2500 US made tale pipes cost = $950
Q: Please see below. These are true or false questions. Need help with all of these please and thank yo...
A: 1. A consumer price index is a price index that measures the cost of a weighted average market baske...
Q: In the one period model, list the requirements for a competitive equilibrium, and explain why each i...
A: Perfect competition refers to the condition of the market where there are a large number of firms or...
Q: Which of the following is TRUE about bonds? * a. If the bond price is greater than its par value, t...
A: Par value refers to the face value of a bond that issuer is ready to repay the bond holder at the ma...
Q: Explain the role of science in policymaking
A: Policy making is the development of ideas or plans that are used as a basis for decision-making b...
Q: Consider the Solow model with no technological progress. Assume that depreciation equals 0.20, popul...
A: In the Solow Model, the Golden Rule level of capital accumulation is the steady-state with the highe...
Q: Question 14 Marginal Social Cost (dollars per course) Quantity (Number of Students) Marginal Private...
A: We know that the social optimal quantity is the level of quantity at which the social marginal benef...
Q: is based on the equivalent worth of all cash inflows and outflows at the end of the planning O a. Fu...
A: Cash flow is defined as amount of cash or cash equivalents that are transferred in and out of the co...
Q: Taking the baseline monetary OLG model literally, what features of the model economy enables fiat mo...
A: The introduction of valued fiat money to the basic overlapping generations model increases the econo...
Q: If computers are like most goods and the price of computers chips rise, then holding all else consta...
A: Assuming: computers are like most (normal goods). Computer chips are used as input in the making of ...
Q: Suppose there is a 10% increase in the price of apples. In the immediate short run this elicits a 1%...
A: The Elasticity of supply measures that how much the quantity supplied of a good changes in response ...
Q: 5. Fixed Proportions Production > The production function for gizmos is: Q = min {2L, 3K} > Graph th...
A: Given Production function Q=min{2L,3K} ... (1)
Q: The equations below represent the demand and supply curves for annual gym memberships in a certain c...
A: Given: Demand equation: qD=500−2p ... (1) Supply equation: qS=0.5p−50 ...(2)
Q: What is the name for the condition where a firm will not take action without considering the reactio...
A: The above mentioned condition usually occurs in an oligopoly market. Here, there are few sellers sup...
Q: A company owes P 80,000, which includes the interest, to be paid one year from now. To provide for t...
A: Disclaimer: Since you have posted two questions, I am providing you with the answer to the first one...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A price change causes the quantity demanded of a good to decrease by 30 percent, while the total revenue of that good increases by 15 percent. Is the demand curve elastic or inelastic? Explain.Home Depot Earnings Hammered As gas and food prices increased and home prices slumped, people had less extra income to spend on home improvements. And the improvements that they made were on small inexpensive types of repairs and not major big-ticket items. Source: CNN, May 20, 2008 a. What does this news clip imply about the in- come elasticity of demand for big-ticket home-improvement items?True or False (explain why) 1. In the market for gasoline, the reason that the equilibrium quantity increased was that the increase in demand was less than the decrease in supply.
- Home Depot Earnings Hammered As gas and food prices increased and home prices slumped, people had less extra income to spend on home improvements. And the improvements that they made were on small inexpensive types of repairs and not major big-ticket items. Source: CNN, May 20, 2008 a. What does this news clip imply about the in- come elasticity of demand for big-ticket home-improvement items? b. Would the income elasticity of demand be greater or less than 1? Explain.2. When price of A $10, quantity demanded 50. Then, price of A increase $3, quantity demanded decrease 10. In other condition, when price of B $5, quantity demanded 20. And price of B $8, quantity demanded 15. Calculate cross elasticity and determined goods type based on elasticity!Subject: Manegerial economics & policy Mcq's 6) If a 10 percent increase in the quantity of spinach demanded results from a 20 percent decline in its price then the price elasticity of demand for spinach is 0.5 20 2 10 7) A good with a horizontal demand curve has an elasticity of infinity zero less than 1 None of the above 8) Which of the following is not a cause of the shift in demand for a product? change in price of product Change in the price of substitute Change in the income of a consumer None of the above
- a) Draw a demand curve for cars. What happens to it in each of the following scenarios? Why? Car dealerships slash prices by 10% Prices of public transportation goes down A recession leads to falling household incomes b) Other things remaining the same, what would happen to the supply of a particular commodity if the following changes occur? 1. The price of the commodity decreases. 2. The prices of inputs used to produce the commodity increase. 3. The price of a commodity that is a substitute in production decreases.(2) Beer and pizza are complements because they are often enjoyed together. When the priceo f beer rises, what happens to the supply, demand, quantity supplied, quantity demanded,a nd price in the market for pizza?1. New advances in recycling technology reduce the cost of producing paper made from recycled material. SELECT THE CORRECT ANSWER a. Which of the following will occur in the market for paper made from recycled material? -supply will decrease -supply will increase -demand will decrease -demand will increase b. Will the advancement in recycling technology result in a shortage or surplus of paper made from recycled material at the previous price? Will the price of paper made from recycled material rise or fall? -surplus, rise -shortage, rise -shortage, fall -surplus, fall