Reciprocal demand depends upon: Select one: a) The price of imports b) A change in economic growth c) The elasticity of demand for another country's production d) The price of exports e) The elasticity of demand for the country's own production
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Reciprocal
Select one:
a) The price of imports
b) A change in
c) The elasticity of demand for another country's production
d) The price of exports
e) The elasticity of demand for the country's own production
Step by step
Solved in 3 steps
- If the price of a good rises, then the effect on the income of the factors that are used intensively in its production will be Group of answer choices 1. to raise income by an absolute amount that is more than the rise in prices. 2. to raise income by a greater percentage than the rise in prices. 3. to raise income by a smaller percentage than the rise in prices. 4. to raise income by an absolute amount that is less than the rise in prices.A decrease in the minimum wage contributes to reduce unemployment if the minimum wage is currently above the equilibrium wage. contributes to reduce unemployment if the minimum wage is currently below the equilibrium wage. decreases the quantity of labor demanded but increases the quantity of labor supplied. increases both the quantity demanded and the quantity supplied of labor.A federal regulation that required that all beef consumed in the US must be grown and processed in the US is likely to: Drive up the price of beef in the US Increase beef consumption in the US Decrease consumption of chicken in the US (assuming chicken is a substitute for beef in the US) Increase international trade in beef products
- What is the Gina Coefficient A measurement of the level of poverty in a country A measurement of how income is distributed in a country A measurement of the demand for normal goods versus inferior goods A measurement of the cost ratio between human and physical capitalMarket demand in Nizwa for rice is obtained by_________. a. By calculating the total supply of rice in Nizwa b. By calculating the total production of rice in Nizwa. c. Adding the demands of all rice consumers in Nizwa vertically d. Adding the demands of all rice consumers in Nizwa horizontallyAt a unit price of $340, the quantity demanded of a certain commodity is 80 pounds. If the unit price increases to $560, the quantity demanded decreases by 22 pounds. Find the demand equation (assuming it is linear) where p is the unit price and x is the quantity demanded for this commodity in pounds. p= At what price are no consumers willing to buy this commodity? According to the above model, how many pounds of this commodity would consumers take if it was free?
- Consider an economy with a single consumer whose preferences are given by U = log(x) - , where x is consumption and labor supply. Assume that the consumption good is produced using labor alone with a constant-returns-to-scale technology. Units of measurement are chosen so that the producer prices of both the consumption good and the wage rate are equal to 1. a. Let the consumer’s budget constraint be qx = , where the consumer price is q = 1 + t, and t is the commodity tax. By maximizing utility, find the demand function and the labor supply function. b. Assume the revenue requirement of the government is 1 10 of a unit of labor. Draw the production possibilities for the economy and the consumer’s offer curve. c. By using the offer curve and the production possibilities, show that the optimal allocation with commodity taxation has x = 9/10 and = 1. d. Calculate the optimal commodity tax. e. By deriving the first-best allocation, show that the commodity…Consider the coffee market and the sugar market. Suppose that these two goods are complements. For each of these two goods, the demand curve is decreasing, while the gold curve is increasing. If the demand for coffee increases, then the equilibrium market price for sugar : a)decreased. (b) remains unchanged. (c) increases (d) There is not enough information to conclude.An economy consists of two regions, the North and the South. The short-run elasticity of labor demand in each region is -0.5. Labor supply is perfectly inelastic within both regions. The labor market is initially in an economywide equilibrium, with 600,000 people employed in the North and 400,000 in the South at a wage of $15 per hour. Suddenly, 20,000 people immigrate from abroad and initially settle in the South. They possess the same skills as the native residents and also supply their labor inelastically.a. What will be the effect of this immigration on wages in each of the regions in the short run (before any migration between the North and the South occurs)?b. Suppose 1,000 native-born persons per year migrate from the South to the North in response to every dollar differential in the hourly wage between the two regions.What will be the ratio of wages in the two regions after the first-year native labor responds to the entry of the immigrants?c. What will be the effect of this…
- Q26 shortage of a good is more likely to occur with the implementation of a choices - price floor - import tariff - price ceiling - export tariffWhen prices for durable goods increase, firms can rapidly increase production to match demand. True or falseGoods x and y are perfect substitutes. When the market price of good x is $5/unit, firm F produces 500 units of x. When the price of y rises, 100 consumers of y shift to the consumption of good x. This causes industry analysts to believe that firm f will increase quantity supplied of x by 100 units to match this increased demand. This conclusion is flawed because a. It assumes that firm f does not export good x. b. It assumes that the price of x will not increase in the near future. c. It assumes that firm f does not export good x. d. It assumes that firm f is the only producer of good x. e. It assumes that the supply curve of x will shift to the right in response to the increased demand.