TRUE OR FALSE? An improvement in the technology will reduce the supply of goods while an increase in cost of production may increase. A decrease in the cost of production will shift the supply curve to the left. An increase in the cost of production will shift the supply curve to the right. The consumer’s income does not influence the demand for goods and services. The increase in demand due to an increase in income is not experienced in the economy.

TRUE OR FALSE? An improvement in the technology will reduce the supply of goods while an increase in cost of production may increase. A decrease in the cost of production will shift the supply curve to the left. An increase in the cost of production will shift the supply curve to the right. The consumer’s income does not influence the demand for goods and services. The increase in demand due to an increase in income is not experienced in the economy.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter8: Understanding Markets And Industry Changes

Section: Chapter Questions

Problem 10MC

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A new technology will most likely ? shift the demand curve to the right shift the demand curve to the left shift the supply curve to the right shift the supply curve to the left
An increase in the population of a country will cause the demand curve to shift outward and supply to increase. true or false
If buyers expect the price of a good will be lower in the future, then? Group of answer choices the current demand for the good decreases the market will act to buy more goods now the current supply of the good increases because fewer people buy it. the current quantity demanded increases there is no impact on the demand for the good
During the COVID 19 pandemic, the demand for personal protective equipment increased. What adjustments would the market make as a result that would benefit the economy? Group of answer choices The price of personal protective equipment would fall because producers could not meet the demand at lower prices. The price of personal protective equipment would rise, signaling to producers that more production was needed. The price of personal protective equipment would rise, signaling to consumers that they should purchase less personal protective equipment. The supply of personal protective equipment fell as production became more expensive.
When a company offers a new product or service, they estimate how much of that product or service people will want at different prices. This is referred to as the product or service demand. As the price of a product or service increases, the demand usually decreases, and this drives the price down. Companies use the estimated demand to determine how much of a product or service they are willing to supply at different prices. As the price of a product or service increases, companies are willing to supply more of it because they will earn more money. If you graph the demand and the supply curves on the same xy-plane, they will sometimes intersect at the point where the price and the supply are in equilibrium. Consider the scenario below. Yaseen is a local artist who wants to increase the amount of money she earns every month by selling at-home painting kits. These kits will include a photograph of the finished painting, a link and password to Yaseen’s YouTube channel where she will…
Given the products and conditions below, indicate how the events affect the demand, supply, equilibrium price and quantity of the goods. (a) Videotapes. The price of DVDs and DVD players decreases. New technology makes videotapes easier to produce. The shift in demand is greater than shift in supply. (b) Roses. The Valentine’s Day season has just begun for the floral industry. A new pesticide decreases the number of flowers affected by pests. The shift in supply is greater than the shift in demand. (c) Tomatoes. FDA publicly announces that eating tomatoes and tomato-based products can significantly reduce one’s risk of developing cancer. An unexpected freeze late in the tomato season destroys a significant portion of this year’s crop. The shift in supply is greater than shift in demand. (d) Healthcare. Highly publicized malpractice cases decrease consumer confidence in healthcare providers. Malpractice insurance premiums paid by doctors increase. The shift in…
TRUE OR FALSE 5. AN INCREASE IN THE LEVEL OF AVAILABLE TECHNOLOGY CAUSES A PRODUCTS SUPPLY TO DECREASE 6.A CHANGE IN THE CONSUMERS INCOME WOULD CAUSE A MOVEMENT IN THE DEMAND CURVE 7. IN REAL LIFE SITUATIONS SHIFTS IN DEMAND CURVE ARE PARALLEL TO EACH OTHER 9. AN ANTICIPATED DECREASES IN THE PRICE OF A GOOD WILL CAUSE SUPPLIERS TO DECREASE CURRENT SUPPLY OF THE GOOD
TRUE OR FALSE? A market is an interaction between buyers and sellers for trade or exchange. The consumer sells and the seller buys. The increase or decrease in the entire demand is shown through a shift of the entire demand curve. This is referred to as a change in demand. The supply curve is upward sloping from left to right. The demand curve is downward sloping from left to right.
This is the willingness and the ability of a consumer to buy goods and services to satisfy their needs and wants.______________________ The amount of goods and services that can be made available for people to buy.__________________ Goods that are bought to be used such as clothes, furniture and cars. _________________ These are goods/ services that we need in order to survive. ______________________ These are goods that are used to make other goods. ___________________
The supply curve will shift to the right if there is: a change in consumer preferences for the good an increase in the population a decrease in the price of materials used to produce the good an increase in the price of the good
What variable is indeterminate? a. increase in business taxes and an increase in the price of a complementary good b. increase in the wages of auto workers and an increase in the incomes of auto customers c. decrease in business subsidies and an increase in income d. decrease in the number of consumers and an improvement in technology e. increase in the number of firms producing the good and decrease in the price of a substitute good
what is the best description of a normal good? demand decreases when income increases demand increases when population increases demand increases when income increases demand decreased when popilation increases