True or False: A good's market price collapses all relevant information about its uses into one number. True False Evaluate the following statement. True or False: When an entrepreneur earns a profit, this indicates that the value of the good or service produced exceeds the value of the other items that could have been produced with those same resources. True O False

True or False: A good's market price collapses all relevant information about its uses into one number. True False Evaluate the following statement. True or False: When an entrepreneur earns a profit, this indicates that the value of the good or service produced exceeds the value of the other items that could have been produced with those same resources. True O False

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.2P

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Green et al. (2005) estmate the supply and demand curves for Californa processod tomatoes. The supply function is: \[ \ln \left(Q_{s}\right)=0.200+0.550 \ln (p) \] whereQis the quantify of processing tomatoes in milions of tons per year andpis the price in dollars per ton. The demand function is: \[ \ln \left(Q_{d}\right)=2600-0.200 \ln (p)+0.150 \ln \left(p_{1}\right) . \] wherep1is the price of tornato paste (which is what processing tomatoes are used to produce) in dollars per ton. Supposept=$119Determine how the equilerium price and quantity of processing tomatees change if the price of tomato pasise tails by16%. If the price of tomato paste fals by18%, then the equaborium price will by 5 (Enter a numene response using a real number rounded to two decimal places)