The price of good A will rise if: O a. The demand for good A decreases. O b. The price of a complement for good A decreases. O c. The price of a substitute for good A decreases. Od. The price of a complement for good A increases.
Q: The following are correct statements about the Marginal Productivity of Labor (MPL), EXCEPT:…
A: The marginal product of labour in economics is the change in output that results from employing an…
Q: A machine would cost $90,000, and would generate revenues of $19,000 per year. However, O&M costs…
A: Given Cost of machine = $90,000 Revenue = $19,000 per year O&M cost = $6000 per year MARR=10%…
Q: Consider a two-firm model with a negative production externality. Let xi denote firm i’s output,…
A: Nash equilibrium is defined as the stable equilibrium that can be achieved because of the…
Q: Find a solution for πt, yt and r₺ as function of the disturbances and the pa- rameters of the model.…
A: The policy undertaken by the central bank of a nation to stabilize the economy is referred to as a…
Q: Based on the available data, the market elasticity of demand for your firm's product is -2.0. The…
A: Given information: Elasticity of demand = -2 Marginal cost = $50 Average total cost = $375
Q: Consider a small island country whose only industry is printing. The following table shows…
A: Labour productivity refers to total output that can be produced by labour. It is total output per…
Q: Given the following Cobb-Douglas production function, how much more output is produced by adding one…
A: We have given production function and level of inputs L =25 and K=100.
Q: The following are correct statements about the Income Effect (IE) and Substitution Effect (SE)…
A: Due change in price quantity of goods is also changed and it is inversely related. This is called…
Q: 2 industrial concentration in the united states with four firm ratio and eight firm ratio
A: Industrial concentration” refers to a structural characteristic of the business. In different words,…
Q: The price rises from $12 to $13, and Qs rise from 95 to 100 Column A Column B 1. % change in…
A: Price elasticity of supply refers to the percentage change in quantity supplied due to percentage…
Q: Identify a local competitor in your country and discuss their advantages and limitations with…
A: A competitor is an individual, team, business, or organization that contests against you or your…
Q: Which of he following provisions of an individual Accident and Heallh policy allows for nonpayment…
A: An insurance premium refers to the amount of money paid by a person, firm, or enterprise to obtain…
Q: The following table depicts the cost and revenue structure of a profit-maximizing firm. FC Q VC AVC…
A:
Q: In a perfectly competitive market, one of the following answers is correct with respect to the…
A: A perfect competition marketplace is one in which multiple enterprises compete to sell the same…
Q: The table below shows two demand schedules for a given style of men’s shoes—that is, how many pairs…
A: The table given below shows D1 and D2 at different price level. Price Quantity Demanded (D1)…
Q: In the perfectly competitive market for mobile phone production all firms have access to the same…
A: Aggregate demand falls as a result of these negative demand shocks.
Q: What are the difference between Direct Method Cash flow with that of indirect method cash flow,…
A: cash flow statement reports the money transaction of a business entity. This statement depicts the…
Q: an investment has been made to an account at a simple interest rate of 12.122% and is expected to…
A: Given Interest earned after 8 years and 5 months I= 350,475 Rate of interest r = 12.122% (simple…
Q: A large textile company is trying to decide which sludge dewatering process it should use ahead of…
A: Given; Centrifuge:- First cost=-300000AOC=-28000Salvage Cost=40000Life= 6 years Belt press:- First…
Q: The BBC News reported that the war between Ukraine and Russia has resulted in food prices across the…
A: Here, it is given that the BBC News reported an increase in the world food prices by 30% due to the…
Q: Angela has been working at a real wage rate of $25 per hour. Illustrate in a diagram how Bruno's…
A: As an ever increasing number of robots are utilized, the interest for work will get decreased. As…
Q: a) Derive the central bank's preferred inflation rate and explain. b) The result in a) reads as πt =…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Define export subsidies. Provide the rationale for a nation subsidizing exports when the loss by…
A: Export subsidies impact the exporting country’s customers. Customers of the by-product in the…
Q: A firm in a perfectly competitive market has a short-run total cost function equal to SRTC=4+20q,…
A: In perfect competition there are large number of firms selling identical goods.
Q: This graph shows the seasonal factor taken out of the series after performing the decomposition.…
A: In the given graph, the data is centered at 0 to make it consistent. This is because of the reason…
Q: Consider a simple economy that produces two goods: pens and erasers. The following table shows the…
A: "Nominal GDP is the GDP value which does not take into account inflation adjustments and is computed…
Q: 4. Estimate the sale price of the following item. Regular price Rounded price Discount percent 27…
A: sales price is the price that a seller is willing to get but in order to maximise the sales some of…
Q: QUESTION 12 What type of products are made using the principle of allocative efficiency? a. Those…
A: Allocative efficiency is one the principle efficient production is based on.
Q: Given a recessionary gap, the Federal Reserve will use monetary policy to decrease; increase…
A: Mainly, there are two types of gaps in economics: 1. Inflationary gap 2. Recessionary gap
Q: Informed trading... a. Aims to profit from differences between the market prices and fundamental…
A: Trading is done by the people through stock markets. In stock markets, people buys and sell their…
Q: Complete each statement. 9. Before an entrepreneur can open the doors of a business, he or she must…
A: An entrepreneur is the person who enters into the market with something new in terms of product,…
Q: The long-run aggregate supply curve will shift outward to the right when there is economic growth. O…
A: The long-run aggregate supply (LRAS) curve is vertical in nature. It implies the full employment…
Q: ect an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. 1…
A: First we to find out the real GDP in year 2 = current year quantity*base year price =…
Q: 2- If the value of the price elasticity of supply is equal to 0.11 -Es = 0.11, the slope = -0.5 and…
A: The supply is positively related to the price of good.
Q: 24) In the simple Keynesian model, if there is an autonomous investme falls by $20 billion and the…
A: The investment is the summation of induced investment and autonomous investment. The autonomous…
Q: P-MC 1 We know that Lerner Index = - The prices charged by a pharmaceutical company are P E 1,500%…
A: Learner’s index measures the marker power of the company.
Q: ) 14) According to the absorption approach what happens to China's trade balance following an…
A: Introduction Absorption and monetary approach both are related to balance of payment adjustments.…
Q: Calculate business investment for the following data: Y = 55,000 C = 40,000 G= 5,000 NX= - 2000…
A: Aggregate expenditure is the sum of consumption, investment, government spending, and net exports.…
Q: Suppose in Year 1 a country has an inflation rate of 10% and in Year 2 the country has an inflation…
A: Disclaimer :- Since you asked multiple question we are solving the first 1 only as per the…
Q: Consider an economy with the given equations. Y = C + I + G + NX Y=$6000 G=$1050 T=$1100…
A: National Savings: National savings implies to the money saved from both the public and the private…
Q: (a) Define the following terms: (1) Absolute advantage; (2) Comparative advantage. Consider the…
A: Absolute advantage refers to the ability to produce more goods using same resources or same quantity…
Q: Use the following diagram for a monopoly to answer the questions. Price and cost per unit MC $30 ATC…
A: The monopoly market is characterized by the presence of single firm. The single firm is price maker.…
Q: 23, Abiola, a programmer, earned $35,000 in 2015, but in 2016, he began to manufacture body boards.…
A: Abiola, a programmer, earned $35,000 in 2015, but in 2016, he began to manufacture body boards. He…
Q: Consider a market structure comprising two identical firms (A and B), each with the cost function…
A: Market demand : P = 210 − 1.5Q, where Q = QA + QB Firm A P = 210-1.5QA-1.5QB…
Q: The demand curve faced by a company in a market characterized as perfectly competitive Group of…
A: Introduction Perfect competitive market It a market where many numbers of buyers and sellers with…
Q: after 2 years
A:
Q: Consider an AD-AS model with AD curve Y - Y* = -ay(π − π*) + €d and AS curve π = π² + OB(Y - Y*) +…
A: Aggregate supply refers to the cumulative quantity of a firm's production and selling, or the real…
Q: If computers are like most goods and the price of computers chips fall, then holding all else…
A: Answer: A decrease in the cost of inputs leads to an increase in the supply of a good. As a result,…
Q: One should expect the forward exchange market to flourish Question 6 options: A) under a flexible…
A: Introduction In Forward exchange market where a contract is signed and the seller is agrees to sell…
Q: Suppose, at a given point in time, Stephanie's Soda Fountain sells ice cream in a perfectly…
A: Given : Perfectly competitive market Producing at the profit maximizing level of output. ATC=$3.3…
Step by step
Solved in 2 steps
- As a general rule, is it safe to assume that a change in the price of a good will always have its most significant impact on the quantity demanded of that good, rather than on the quantity demanded of miller goods? Explain.What will happen if the price were below the equilibrium price? Select one: O a. Quantity demanded would exceed quantity supplied and there would be a surplus O b. Quantity demanded would exceed quantity supplied and there would be a shortage O c. Quantity supplied would exceed quantity demanded and there would be a surplus O d. Quantity supplied would exceed quantity demanded and there would be a shortage Oe. Quantity supplied would equal quantity demanded and the market would clearConsider the market for tea. Which of the following scenarios would definitely result in an increase in the price of tea?O a. A new study is published explaining the benefits of tea, and at the same time a new technology allowing for more efficient tea farming is discovered.O b. The price of coffee falls, and at the same time a new technology allowing for more efficient tea farming is discovered.O c. Consumers expect the price of tea to fall in the future, and at the same time a fire wipes out a significant portion of tea farms.O d. The price of coffee falls, and at the same time the cost of labor to farm tea decreases.Oe. A new study is published explaining the benefits of tea, and at the same time a fire wipes out a significant portion of tea farms.
- A change in price of a good or service typically causes O a new equilibrium price O a change along the supply curve the supply curve to shift O a decreased demand for that specific good or service.Assume that both the demand curve and the supply curve for coffee shift to the right but the demand curve shifts more than the supply curve. As a result O the equilibrium price of coffee will decrease; the equilibrium quantity may increase or decrease. O the equilibrium price of coffee may increase or decrease; the equilibrium quantity will increase. O both the equilibrium price and quantity of coffee will increase. O the equilibrium price of coffee will increase; the equilibrium quantity may increase or decrease.1. If the price of good X increases from RM3 to RM5, the quantity demanded drops from 10 to 8. Find the slope of the demand curve. a) 0.2 b) 5 c)-1 d) -2 Other: 2. Based on Question 1. calculate the quantity when the price is equal to o. a) 13 b) 2 c) 10 d) 5 3. Based on Question 1, if the market price is equal to 1. determine how many units of good X will be sold in the market. a) cannot be determined b) 12 c) 10 d) 14
- 1. If the price of good X increases from RM3 to RM5, the quantity demanded drops from 10 to 12. Find the slope of the demand curve. a) 0.2 b) 5 c)-1 d) -2 Other: 2. Based on Question 1. calculate the quantity when the price is equal to o. a) 13 b) 2 c) 10 d) 5 3. Based on Question 1, if the market price is equal to 1. determine how many units of good X will be sold in the market. a) cannot be determined b) 12 c) 10 d) 14 4. If the price of Pepsi increases, what will happen to the market price of Coke? a) remain unchanged b) decrease c) increase d) changeThe price of tea increases. At the same time, robots are developed which prove to lower the cost of production of coffee. In the market for coffee, we should expect to see curves shift. The supply curve will -- and the demand curve will --- O a. shift up-shift to the left O b. shift up - shift to the right c. shift down - shift to the left O d. shift down - shift to the rightAn increase in demand combined with no change in supply causes a. a decrease in demand because the supply curve does not shift O b. the equilibrium price to fall C.a movement rightward along the demand curve O d. the equilibrium price to rise.
- The US government reduces the supply of raw material for production of Covishield,. Simultaneously the vaccine awareness is increasing amidst the rising second wave of the deadly Corona Virus. In the market of Covishield we should observe O a. Reduced demand and reduced supply O b. Reduced supply and unchanged demand O c. Reduced supply and increased demand O d. Increased supply and unchanged demandplease show work Suppose there is a decrease in the hourly wages of farm workers in Ontario who harvest blueberries. This Select one: O A. shifts the supply curve of blueberries rightward. B. shifts the demand curve for blueberries rightward . O C. shifts the demand curve for blueberries leftward. O D. shifts the supply curve of blueberries leftward. O E. decreases the quantity supplied of blueberries.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.