Demonstrate your comprehension of differences in changes in supply versus changes in quantity supplied by matching choices. shown graphically as a rightward shift in a supply curve caused by a decrease in the price of the good or service 1. increase in supply caused by an increase in the price of the good or service 2. increase in quantity supplied shown graphically as a leftward shift in a supply 3. decrease in supply curve 4. decrease in quantity supplied shown graphically as movement up along a supply curve shown graphically as movement down along a supply curve
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- For normal goodsA) the substitution effect of a price decrease will decrease the quantity of the good demanded while theincome effect of a price decrease will increase the quantity of the good demanded.B) the substitution and income effects of a price decrease will both increase the quantity of the gooddemanded.C) the substitution and income effects of a price decrease will both decrease the quantity of the gooddemanded.D) the substitution effect of a price decrease will increase the quantity of the good demanded while theincome effect of a price decrease will decrease the quantity of the good demanded.answer please the last 2 sub questions The estimated demand for Canadian Processed Pork is given byQD = 171 − 20p + 20pB + 3pC + 2Ywhere QD is the quantity of pork demanded (millions of kg), p is the dollarprice per kg, pB is the price of beef per kg, pC is the price of chicken perkg, and Y is average consumer income in thousands of dollars. The supplyfor this market is given byQS = 178 + 40p − 60pB(a) According to the equations, what is the effect of an increase of pCon the market for pork? Specifically, which curve will shift, in whatdirection does the curve shift, and how will the equilibrium priceand quantity change (increase/decrease). On a corresponding graphof the supply and demand, draw the shifting curve and change inequilibrium. Note that no specific numbers are required here. Justthe direction of change.(b) Use the equations to solve for the equilibrium price of pork and quantity of pork as functions of the exogenous variables pB, pC , and Y .These will be linear…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 demand.In the new equilibrium, Jamaicans might end up consuming more beef thanthey did initially.”
- . It is a hot day, and Bert is thirsty. Here is the value heplaces on each bottle of water:Value of first bottle $7Value of second bottle $5Value of third bottle $3Value of fourth bottle $1a. From this information, derive Bert’s demandschedule. Graph his demand curve for bottledwater.b. If the price of a bottle of water is $4, how manybottles does Bert buy? How much consumersurplus does Bert get from his purchases? ShowBert’s consumer surplus in your graph.c. If the price falls to $2, how does quantitydemanded change? How does Bert’s consumersurplus change? Show these changes in yourgraph.Candance’s general budget constraint for the two goods is a follow: B= PxX + PyY Also, her marginal utilities are: MUx =30X^2Y^3 and MUy =30X^3Y^2 A. Derive the Hicksian demand for good X at these prices. Hint, you need to choosethe three correct equations you’ve derived above and solve simultaneously. Also,draw both demand curves on the same graph.B. Using the information derived in parts A and B, what is the substitution effect andincome effect obtained when changing the price of good X from a value of 1 to avalue of 2.Explain how the market demand curve for a ‘normal’ good will shift (i.e. left, right or noshift) in each of the following cases? What then will happen to the equilibrium price andquantity?(a) The price of a substitute good risesClick or tap here to enter text.(b) The price of a complementary good fallsClick or tap here to enter text.(c) The price of the good increasesClick or tap here to enter text.(d) Tastes shift away from the goodClick or tap here to enter text.(e) Personal income increases with diagrams please
- In the bread market, Maria buys different amounts of bread conditional on whether the price is $2, $5, or $7 a loaf. To generate Maria’s demand curve for bread, what other set of information do we need? Group of answer choices: whether her bread consumption goes up or down with price how much bread she buys in total how much bread she buys at each price point whether or not she switches to a substitute when the price is highIf 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 higherquantityAnswer the following short questions:a. Suppose that a consumer’s preferences between goods x andy are represented by the utility function u(x, y) = x^2 + 16xy + 64y^2. If these two goods have the same price, describe the optimal consumptionchoice of this consumer.b. Suppose that when the price of a good change, the incomeand substitution effects change the consumer’s demand for that goodin opposite directions.i. Is this good a normal or an inferior good? Explain.ii. Is this good a Giffen or an ordinary good? Explain.c. Is the following statement true or false? The differencebetween a monopolist’s marginal cost and its profit-maximizing price issmaller when the demand is more elastic.
- The law of demand states that if other factorsremain constant there isSelect one:a. An exponential relationship between priceof a good and the quantity demanded.O b. A negative relationship between the priceof a good and the quantity demanded.oc. A linear relationship between price of agood and the quantity demanded.O d. A positive relationshipbetween the price ofa good and the quantity demanded.Which of the following statements are true? Instruction: you may choose more than one option. O. The Law of Demand is explained by the Slutsky-Hicks equationO. All statements are false.O. For well behaved preferences the income effect is positive.O. For well behaved preferences the substitution effect is non positive.O. if the demand foro good increases when income then the demand for that good must decrease when its price increases.O. A Giffen good cannot be explained by the Slutsky-Hicks equation.If a 10% decrease in the price of one product thatyou buy causes an 8% increase in quantity demandedof that product, will another 10% decrease in the pricecause another 8% increase (no more and no less) inquantity demanded?