How can we explain the lower flat section and the upper flat section of the Relative Supply (RS) curve?

Q: Goods A and B are substitutes in production. The price of good A rises. As a result, the equilibrium…

A: Meaning of Production Function: The term production function refers to the situation under which a…

Q: For each of the following four situations, determine if it is the demand or the supply of autos that…

A: 1. If price of steel rises then supply will decrease but demand will remain unaffected. This will…

Q: Show in a diagram the effect on the demand curve, the supply curve, the equilibrium price, and the…

A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…

Q: For each of these situations, answer what happens to į) demand, ii)_supply, iii) equilibrium price…

A: There are many factors that shift the demand and supply curve either in the leftward direction or in…

Q: Suppose one of your friends offered the following argument: a rightward shift in demand will cause…

A: According to the inverse demand function, an increase in price leads to an increase in demand. This…

Q: Consider the market for chicken burger. For each of the events listed here, identify which of the…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…

Q: The __________ and ___________ curve together determines the equilibrium quantity and equilibrium…

A: # if we consider the free market where the government intervention is not taken into consideration,…

Q: Which of the following situations will cause for an outward shift in supply? a. There is a rise in…

A: The quantity of a commodity that providers are willing to manufacture and sell at various prices…

Q: Consider the following: “If a price is not an equilibrium price, there is a tendency for price to…

A: Equilibrium is accomplished at the cost at which amounts requested and provided are equivalent. We…

Q: Draw a supply and demand diagram to illustrate the effect on equilibrium price and quantity traded…

A: Inferior Goods  Inferior goods are considered as those goods in the economy, the demand of which is…

Q: XERCISES Make a graph to illustrate the effects of the following events on the demand curve:  a…

A: The curve that depicts the quantities that the buyers are willing to buy at various levels of price…

Q: During 2009, incomes fell sharply due to the financial crisis of 2008-2009. This change likely led…

A: In a competitive market, there exists a large number of buyers and sellers of a good or service. In…

Q: What is the effect of releasing onions from federal stores on the onion market? Following the…

A: A market is a place where the buyers and the sellers interact with each other and the exchange of…

Q: Explain why the market price may not be the same as the equilibrium price.

A: Quantity supplied is the units of a service that its  suppliers are willing and able to supply to…

Q: In terms of our shift variables of demand and supply, how are each of the following pairs related?…

A: As wheat is used as a raw material in bread, an increase in the price of wheat makes the production…

Q: What are five things that will shift a supply curve to the right?

A: Five things that will shift a supply curve to the right are as follows 1.Increase in technology…

Q: Suppose the demand curve for desktop computers shifts leftward and at the same time supply curve…

A: Given that the demand curve for desktop computers shifts leftward and at the same time supply curve…

Q: Using the graph above, answer the following questions: • What is happening to the supply curve? •…

A: Supply shock is situation where there is sudden increase or decrease in availability of goods more…

Q: Consider the market for minivans. For each of the events listed, identify which of the determinants…

A: A recession reduces average family income. This reduces the spending capacity of the households due…

Q: If goods X and Y are substitutes in production, if the price of good Y increases, all else the same,…

A: Two goods are said to substitute if one good can be used in place of the other. Two goods are said…

Q: Define Shifts in supply. ?

A: Supply refers to the amount of the goods or services in the economy that are available for purchase…

Q: Consider the supply of pork. What are at least three different developments that might shift the…

A: Economics as a subject is used to study and plan the allocation of scarce resources among humans…

Q: In terms of our shift variables of demand and supply, how are each of the following pairs related?…

A: (d)   Crackers and peanut butter: Both crackers and peanut butter are complementing goods. When the…

Q: Hi, can you explain why number 4 in the attached screen shot is answer B and not A? Why is supply…

A: We can calculate elasticity using the formula shown below.

Q: Q3. Which of the following is the relation that the law of demand defines? a) Income and price of a…

A: Law of demand shows the inverse relation that exists between price of a good and quantity demanded…

Q: When asked for investment advice, humorist Will Rogers joked that people should “[b]uy land. They…

A: Supply and demand are the backbone of a market economy. The price of a product or good is determined…

Q: Discuss how prices are determined in a market economy. Find a good/service for which the price has…

A: The demand and supply of any product represent the ability and willingness of consumers and…

Q: If the price of petroleum is rising, we can expect both the supply curve and demand curve to shift…

A: Answer to the question is as follows :

Q: If the amount of currency in the market place goes up because more loans are being purchased with…

A: The foreign exchange market includes firms, families, and financial backers who buy foreign…

Q: Consider the market for minivans. For each of the events listed, identify which of the determinants…

A: If people have more children, they will want to have bigger vehicles for hauling kids around,…

Q: Which of the following is the relation that the law of demand defines?   a) Income and price of a…

A: The law of demand works on the assumption of ceteris paribus which means that the law assumes all…

Q: Most people demand goods and services much less than they want. True or False? Explain your answer.…

A: Answer 1.  The quantity of a commodity or service that consumers are willing and able to purchase at…

Q: Which of the following are determinants of supply ? Select one: a. the price of related goods b.…

A: [Since more than 1 question are posted, only 1st one is answered as per answering policy]…

Q: By using diagram, show the impact of a shift of demand or supply on the equilibrium point.

A: In a competitive unregulated market, there are a large number of buyers and sellers of the good in…

Q: How do changes in the interest and unemployment rates impact the supply curve?

A: Interest rate: - it is the percentage charge on the principal amount from a lender to a borrower.…

Q: The supply Curve will shift _________ if the price of the raw material rises

A: The prices of raw material has a direct impact on the cost of production of the firm and thus it…

Q: Pizzas are less expensive than they used to be. Draw the two different graphs, shifting D or S,…

A: The Price is decided by the intersection of demand and supply forces. Any change in either demand or…

Q: The market in question is the wheat market. Wheat farmers have been given subsidies (they are given…

A: A natural disaster is the determinant of the supply curve. It means as a natural disaster is…

Q: Which of the following will not shift a supply curve?

A: Supply curve is the curve which shows the relationship between quantity supplied and the price. It…

Q: If less rainfall limited the supply of indian onion production, how will it change the equilibrium…

A: Hefty unseasonal precipitation has secured most recent onion produce wet fields all through onion…

Q: In what direction will the supply curve shift if the prices of the raw materials needed to produce…

A: The positive relationship between the supply and the price of a commodity is depicted on a supply…