Consumers buy less of a good as its price increases because: а. Production costs have risen. Substitute goods are now relatively cheaper. The income of consumers has effectively risen. The higher price will make the good more valuable to each consumer. b. с. d.
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- Other things the same, the aggregate quantity of goods demanded in the U.S. increases if Group of answer choices money supply falls. the interest rate falls. the interest rate rises. dollars appreciate.True or False: Line B has a slope of infinity. (look at line labelled b) The following graphs show the relationship between the price of apples and the quantity of apples supplied in two different regions, the North and the and South. Assume that the two lines are parallel. In the North, if the price goes up by $0.20 per pound, then the quantity supplied in the North goes up by 100 pounds per year. If the price of apples goes up by $0.20 in the South, what will happen to the quantity supplied? A. The quantity will decrease by 100 pounds per year. B. There is not enough information given to determine the supply change in the South. C. The quantity will increase by 100 pounds per year. D. The quantity will increase by 50 pounds per year.Josh wants to buy a house. If the price level increased by 8%, due to___ (other things equal) Josh will be____ to purchase a house.
- Suppose a decrease in the world demand for desktop computers causes the price of desktop computers to fall from $600 to $500. Before the fall in demand, Juna, a local computer dealer in Japan, used to produce 9,000 desktop computers and exported 50 percent of it to other countries every week. However, after the fall in demand, Juna reduced its production to 8,000 units and exports only 40 percent of its total output.a. What are the changes in the quantity sold to domestic consumersb. What are the changes in the consumer surplus?c. Sketch a diagram to illustrate the changes for Juna.When bakeries produce sliced bread, they also produce bread crumbs. Bakeries sell the sliced bread to families and sell the bread crumbs to fish shops. When the price of bread crumbs rises, what happens to the supply of sliced bread and its price? Sliced bread and bread crumbs are ________. When the price of bread crumbs rises, the supply of sliced bread ________ and the price of sliced bread ________. A. substitutes in production; increases; falls B. complements in production; increases; falls C. complements in production; does not change; does not change D. substitutes in production; decreases; risesAssume we are looking at the gasoline market. How would a major increase in the supply of oil worldwide affect this market? Demand increases..a shortage developes..price declines..lower prices prevail Demand decreases..a surplus developes..price declines..lower prices prevail Supply increases..A surplus developes..price decreases..lower prices prevail Supply decreases..A shortage developes..price increases..higher prices prevail
- An economy depends on two commodities, bees and honey. It takes 3/4 units of bees to produce 1 unit of honey and 1/2 unit of honey to produce 1 unit of bees. Find the production required to satisfy a demand of 100 units of bees and 300 units of honey. Hint: x = (I - A) ^ - 1 * D Please step by step answer.In the United States, grain has many uses. These include food (directly and indirectly), fuel, and exportation. Since 2001, the growing demand for grain has resulted in a double price of farmland in Iowa, Nebraska, South Dakota, and Wyoming. How does the growing price of grain affect the market for farmland? How might farmers meet the growing demand for grain without having to use a greater quantity of land?You are given the following information about the economy Personal consumption 6500 Indirect taxes less subsidies 150 State government consumption 500 Rental Income 2000 Change in business inventories 100 Stock appreciation 80 Gross private domestic Investments 1200 Exports 900 Net factor payments -100 Imports 1200 Depreciation 200 Define and calculate the following: GDPMP, GDPFC, GNPMP,GNPFC, NDPMP,NDPFC,NNPMP,NNPFC. How can price distortions be avoided in a market
- Assume that the whole world is one lithium market. As more lithium deposits are discovered and more countries begin mining lithium, we can expect the price of lithium to (rise, fall, remain the same) and the quantity of lithium to (rise, fall ,remain the same)Due to Covid -19 and fall in the National Income, the government of India reduced subsidies for farmers. This will lead to ____________. a. Rightward shift in the supply of farm products in the economy b. Leftward shift in the supply of farm products in the economy c. None of these. d. No change in the supply of goods in the economyAssume that the equilibrium price of French fries rises, while the equilibrium quantity falls. The most consistent explanation for this observation is:a. An increase in the price of onion rings (a substitute for French fries).b. A fall in the price of onion rings.c. A rise in the price of potato bread (production-side substitute for French fries)d. A fall in the price of potato bread.Note: the answer is alternative C) and you are asked to argue why it is correct; and further argue why the other alternatives are false or uncertain.