E3 Assume a perfectly competitive market for restaurant servers.Assume that in 2026, there is a permanent decrease in demand for personal trainers.Based on this information and what we know about long-run vs. short-run elasticities, how will the short-runchanges in price and quantity compare with the long-run changes in price and quantity.O Long-run decrease in price will be larger than short-run decrease in price. Long-run decrease in quantity willbe smaller than short-run decrease in quantity.Long-run decrease in price will be smaller than short-run decrease in price. Long-run decrease in quantity willbe larger than short-run decrease in quantity.O Long-run decrease in price will be smaller than short run decrease in price. Long-run decrease in quantity will besmaller than short-run decrease in quantity.O Long-run decrease in price will be larger than short-run decrease in price. Long-run decrease in quantity willbe larger than short-run decrease in quantity.

Basics:- When we talk about the short run and long run, so we need to keep in mind that in short run…

Answered: Assume a perfectly competitive market…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 10PA

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Using the midpoint formula for calculating the elasticity of supply, if the price of a good rose from $95 to $105, what would be the elasticity of supply if the quantity supplied changed from a. 38 to 42? b. 78 to 82? c. 54 to 66?
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Consider any market where the Supply Curve is given by O = 25 + 0.2P and the Demand curve is given by 500-0.3P Ask: a) Calculate prices and equilibrium quantity of this market b) Consider that this market operates with prices equal to 900.00. What's happening? c) Regarding the result found in (b), consider the impacts of a change in the supply curve to O = 50+0.2P. Discuss the results and plot the fit graphs on the supply curves.
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Suppose that President Clinton has recently recommended that the U.S. should use some of the strategic oil reserves (oil stored underground and owned by the United States government) in order to solve the U.S. oil supply problem. Assume that quantity demanded in the short-run is inelastic at 1 million barrels per day. The quantity supplied (per day) is equal to 700,000 + 10,000P (where P is the price for a barrel of oil). a. What would be the current price for a barrel of oil? N b. If Clinton releases 100,000 barrels per day, what is the new equilibrium price and quantity? N c. Presidential candidate George W. Bush proposed that all states lower their gasoline tax. Assume that the gasoline tax reduction leads to a $10 decrease in the tax on a barrel of oil (i.e., supply side). What is the new price and quantity? N How much of the tax savings will be passed on to consumer through lower prices? Assume that the changes in part b. have not occurred. d. What impact do each of these two…
Answer correctly with explanation , ASAP 1.Jerry drives up to a gas station. Before looking at the price, he says, “I’d like $10 worth of gas.” Jerry’s price elasticity of demand is a. perfectly inelastic. b. perfectly elastic. c. unit elastic. d. None of the above is correct.. 2.Which of the following must always be true as the quantity of output increases? a. Marginal cost must rise. b. Average total cost must rise. c. Average variable cost must rise. d. Average fixed cost must fall.
ADVANCED ANALYSIS Currently, at a price of $2 each, 300 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase from $2 to $4 is unit-elastic (Es = 1). In the long run, a price increase from $2 to $4 has an elasticity of supply of 1.50. (Hint: Apply the midpoints approach to the elasticity of supply.) a. How many popsicles will be sold each day in the short run if the price rises to $4 each? per day. b. So how many popsicles will be sold per day in the long run if the price rises to $4 each? per day. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

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