A shortage will occur if a is set the equilibrium price. O A) price ceiling below O B) price floor, below C) price ceiling, above O D)price floor, above
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- A life-saving medicine without any close substitutes will tend to have a. a small elasticity of demand. b. a large elasticity of demand. c. a small elasticity of supply. d. a large elasticity of supply.If demand decreases (D shift to left) and supplyremains unchanged, then it leads to..........equilibrium price and........Select one:O a. Lower equilibrium price and higherquantityO b. Higher equilibrium price and lowerquantityOc. Lower equilibrium price and lower quantityO d. Higher equilibrium price and higherquantityPlease no written by hand and no image Suppose Body Fragrances increases the price of its Adore Me fragrance from $150 to $200. The result is a decrease in... Select one: O a. the supply of this product O b. the quantity demanded of this product O c. the quantity supplied of this product O d. the demand for this product
- A change in price of a good or service typically causes O a new equilibrium price O a change along the supply curve the supply curve to shift O a decreased demand for that specific good or service.b. The equilibrium price of printers saw a large decrease in the past year, howeverthe equilibrium quantity remained unchanged. Three individuals provided anexplanation for the situation. Which explanation(s) could be correct? Explain.• Alex: Demand increased, but supply was totally inelastic.• Lance: Supply increased, but so did demand.• Ricardo: Supply decreased, but demand was totally inelastic C.The demand for pancakes is given by Qd = 40 – 5P and the supply is given byQs = 10P – 20, where P = price What is the equilibrium price and equilibriumquantity? i. The price for iPhones in Barbados has increased significantly. Demand for thecellular device has also increased. This is contrary to the law of demand. Doyou agree or disagree? Explain your answer. ii. Identify the flaw in this analysis: “If more Jamaicans become vegetarians, thedemand for beef will fall. The decrease in the demand for beef will cause theprice of beef to fall. The lower price, however, will then increase the…When calculating the cross-price elasticity of demand between any two goods, O a. the answer will always be a positive number. O b. the answer will be positive if the goods are substitutes of each other, and negative if they are complementary goods. O c. we take the absolute value of the elasticity because it is redundant information. O d. the answer will be negative if the goods are substitutes and positive if they are complementary goods.
- The demand for stoves is given by QD=450−20P and the market supply isgiven by QS = 20 + 100Pi. In equilibrium, how many stoves would be sold and at what price? ii. What would happen if suppliers set the price of stoves at $15? Explainthe market adjustment process. iii. Using the response in part (i), calculate the price elasticity of demandfor stoves when price changes to $10.An increase in demand combined with no change in supply causes a. a decrease in demand because the supply curve does not shift O b. the equilibrium price to fall C.a movement rightward along the demand curve O d. the equilibrium price to rise.If the price of product M increases from $80 to $100, the quantity supplied for product M will increase from 850 to 1150 o What is price elasticity of supply for product M?If the market price of pizza falls from $15 to $12, the quantity supplied for pizza will drop from 2000to 1500. o What is price elasticity of supply for pizza withrespect toa) original price of pizza?b) new price of pizza?c) midpoint-price of pizza?
- If the price of product A increases from $80 to $100,the quantity demanded for product A will decreasefrom 1200 to 1000o What is price elasticity of demand for product A ?If the market price of burger falls from $12 to $10,the quantity demanded for burger will be up from1450 to 2000.o What is price elasticity of demand for burger withrespect toa) original price of burger ?b) new price of burger ?c) midpoint-price of burger ?In equilibrium, how many stoves would be sold and at what price? The demand for stoves is given by QD=450−20? and the market supply is given by QS = 20 + 100P. (i), calculate the price elasticity of demandfor stoves when price changes to $10ii. What would happen if suppliers set the price of stoves at $15? Explainthe market adjustment process. iii. Using the response in part (i), calculate the price elasticity of demandfor stoves when price changes to $10The income elasticity of demand for a perfume is 0.5 Which of the following is the correct interpretation O a. A 1 percent increase in income will result in 2 percent rise in its demand O b. A2 percent increase in income will result in 1 percent fall in its demand C. A 50 percent increase in income will result in 1 percent rise in its demand O d. A 2 percent increase in income will result in 1 percent rise in its demand
