In the basic supply-and-demand model, a buyer only purchases a good when?    if the price is lower than it was previously. if the price of the good covers the producers’ costs of production. if the price is less than they are willing to pay. if doing so increases the well-being of society. if they are forced to do so.

Q: According to Adam Smith, the "invisible hand" refers to the government's effort to always keep a…

A: Adam Smith was an economist who is well known for his book wealth of nation, invisible hand.

Q: Suppose a binding minimum wage is imposed on the labor market, then basic microeconomics predicts…

A: The eqm. wage and employment in labor market is determined by the intersection of d(demand for…

Q: Is tipping a waiter 15% of the bill traditional,market or command in economics?

A: Tipping a waiter 15% of the bill is a tradition in some cultures. In others, it is considered a…

Q: "It is better to pay regular price than to stand in a long line for a free time." Discuss the…

A: There are 10 basic principles of economics, out of which three principles will help understand…

Q: What type of economists believe that markets naturally self-correct, and will reward good strategies…

A: Laissez fair economics theory advocates non-government intervention in the economic activity.  They…

Q: Being able to make an item at a lower cost than anyone else can make it is an advantage? True or…

A: To make any item at lower cost is always a plus point in the market.

Q: which statement is correct If a good is not being produced by sellers with the lowest cost, then…

A: Profit Maximization level: The level of production that maximizes the profit of the firm or the…

Q: Economic models A) are people who act out the behavior of firms and households so that economists…

A: Because of economic models,economists are able to understand economic terms and relate it to reality…

Q: How does a market reach equilibrium without any outside intervention? Explain using the supply and…

A: A market will reach equilibrium without any outside intervention with the help of market forces. The…

Q: what is the best description of a normal good?

A: Normal goods are those goods which see an increase in their qty demanded(Qd) with the increase in…

Q: what sort of shift in supply or demand would result in a market equilibrium with higher prices but…

A: The equilibrium price is known as the prevailing market price. The equilibrium price is the price at…

Q: Air passenger traffic increases significantly during the holidays. How would you show this increase…

A: There would be an increase in demand for air travels during holidays. The demand curve will shift to…

Q: Services are perishable, which means they cannot be stored or inventoried. What attempts might a…

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

Q: Economics film is a film genre concerned with themes and topics that fall broadly the umbrella of…

A: The science that tends to deal with distribution, production as well as consumption of services and…

Q: Does the price control mechanism (price floor and price sealing) to a resource shortage provide an…

A: Yes, the price mechanism gives a positive and negative feedback loop.

Q: At a price of $4.97 per pound, the supply for cherries is 16,289 pounds, and the demand is 10,218…

A: Demand and supply  In an economy there is always a demand for goods and services and the supply of…

Q: Generally speaking, what must occur in order for demand to shift? Supply to shift?  How does the…

A: Answer: A shift in demand curve: A shift in the demand curve occurs when all the other factors…

Q: After defining a ‘market mechanism’ and the ‘law of supply and demand’, explain how higher education…

A: The fluctuations that take place in the prices of various commodities are analyzed as the…

Q: Graphically show how each of the following shifts the supply curve. Also identify which factor of…

A: 1) Country B's government imposing quota restrictions on import of clothes. This would mean less…

Q: Which of the following statements are false?   Group of answer choices   People respond to…

A: Perfect Competition refers to the type of market competition where there is free entry and exit of…

Q: Some have argued that higher cigarette prices do not deter smoking. While there are many arguments…

A: In the market, demand refers to the amount of goods and services that are required by households,…

Q: True or False: If price were outlawed as the rationing device (used in markets), there would be no…

A: Rationing:- To deal with the shortage, rationing is the process of decreasing the distribution of an…

Q: Which of the following is an example of an incentive? A. Purchases from a store earn the buyer…

A: In the broadest sense, an incentive is anything that encourages someone to do something. When it…

Q: For each question,start with a supply and demand graph of the market for tennis rackets. What…

A: Let the starting equilibrium graph be,

Q: When markets fail, public policy can   a.  do nothing to improve the situation.     b.…

A: Market failure is when the allocation and distribution of goods and services is inefficient. In…

Q: PPFs are usually bowed out because:    a) all resources are not equally adaptable in the production…

A: Production possibility frontier refers to a curve that shows the combinations of two goods located…

Q: Which of the following statements are true? Markets are forums in which parties exchange goods and…

A: Markets by definition involve the exchange of money for goods and services. This statement is…

Q: Avon pays its sales personnel a commission for every sale they make. Which economic principle is…

A: Economic principles enable the study of economics easy and understandable by making some basic…

Q: With respect to supply and demand, please give a specific example where a supply and demand were…

A: The whole world demolished due to novel Covid-19 pandemic outbreak. The global lockdown was also…

Q: What mechanisms allocate resources when the price of a good is not allowed to bring supply and…

A: Demand for a commodity is desire back by ability to pay and willingness to buy the commodity at a…

Q: Many states have price gouging laws. These laws forbid the prices of certain goods from rising…

A: Here, it is given that many states uses price gouging laws to prevent the market price of goods and…

Q: y are willing to pay for the next unit of the good.     (b) Represents the value of that unit of…

A: The equilibrium is defined as point where demand is equal to supply.The market demand curve…

Q: Question 25 S 35 30 25 20 15 10 D O 2 4 6 8 10 12 14 16 Quantity (dozens of roses per day) Price…

A: 21)  Point X Y A 0 30 B 2 28 C 4 24 D 6 18 E 8 10 F 10 0 Given the ppf 6 units of…

Q: Which of the following is not correct? Group of answer choices The value of the economist’s language…

A: The value of the economist’s language lies in its ability to provide you with a new and useful way…

Q: Which of these statements does not apply to market economies? Select one: a. Prices influence how…

A: An economic system is referred to as a market economy. The interactions of a country's individual…

Q: During natural disasters such as the flooding in Burma one policy choice is to do nothing, i.e. let…

A: Policies are framed by the government for the betterment of the economy. Government intervention is…

Q: He described economics as a science of material welfare

A: To find : Who describes economics as science of material welfare

Q: What is supply? Decision making behavior of sellers and shows the quantity that sellers are willing…

A: Supply : The supply can be defined as the quantity of the commodity that the seller is willing to…

Q: Classifying a good as rival means   A. that the good is produced in a competitive market.   B.…

A: The answer to the question is as follows :

Q: Thinking on the margin can be correctly described as a _____. A. process that helps maximize total…

A: Thinking on the margin means to think about the next step forward. The word “marginal” in economics…

Q: When policymakers set controls on prices, they obscure the signals that guide the allocation of…

A: In a market, when policymakers try to control prices by imposing price floor or price ceiling, it…

Q: Parents offer to buy their son a new videogame if the kid gets an A in all his classes. Which…

A: Economics refer to the study of allocation of limited resources in the presence of unlimited wants…

Q: Some have argued that higher cigarette prices do not deter smoking. While there are many arguments…

A: Law of Demand: The law of demand indicates that when other things are constant then a rise in prices…