Why the AD curve always negative?

Q: labor and capital in the four ways shown below. Assume the prices of labor and capital are $2 and…

A: Price of product A = $0.50Quantity produced = 20 unitsprice of labor = w = $2price of capital = r =…

Q: Price Level D (C Multiple Choice A AS, AS, B AD, Q₂ Q₁ Q₂ Real Domestic Output AD₂ Refer to the…

A: Demand is the willingness and ability of an individual to buy a good. It is influenced by consumers'…

Q: Nina really hates the traffic on her morning commute. The local council just built a new cycle lane…

A: Marginal private costs refer to the additional cost associated with the additional consumption or…

Q: Which of the following people is least likely to be hurt by unanticipated inflation? a. An owner of…

A: Unanticipated inflation is a condition in which people, companies, or government authorities did not…

Q: On the following graph, plot the demand for boots using the blue point (circle symbol). Next, plot…

A: Equilibrium Price is the price at which the quantity demanded by consumers equals the quantity…

Q: QUESTION 7 According to international trade theory, a country should: O import goods in which it has…

A: International trade is a branch of economics that deals with the exchange of goods, capital flows,…

Q: Suppose the supply curve of portable radio rentals in Golden Gate Park is given by: P= 5 +0.1Q,…

A: The supply equation of portable radio is P=5+0.1Q   .... (1)The demand equation for portable radio…

Q: The table below lists Bruno's Custom Bike Shop's costs and revenue for the month of May: Bike Parts:…

A: Total revenue is the product of price and quantity. Monetary expenses are the explicit cost.…

Q: An increase in the demand for gasoline O leads to an increase in consumption and potential GDP.…

A: Potential Gross Domestic Product (GDP), which means potential output or full-employment GDP, is an…

Q: (Figure: Capital and Labor IV) Which of the following statements is (are) TRUE? Capital (K) 15 12 9…

A: ISO-Quant: Iso -Quant shows different combinations of capital and labour such that each combination…

Q: (f) When the price of gasoline is $1 per gallon, how much does weekly demand fall when price rises…

A: To calculate the changes in weekly demand for gasoline for both Buick owners and Dodge owners when…

Q: Which of the following statements is correct about the determinants of supply and demand? Multiple…

A: Demand refers to the goods and services that people ask for in the market. A change in demand leads…

Q: 3. The effect of negative externalities on the optimal quantityof consumption Consider the market…

A: The market equilibrium quantity is where the private marginal benefit curve intersects the private…

Q: Which of the following statements about self-interest in a market system is false? Multiple Choice…

A: Market refers to a place at which the buyer and seller of goods or service comes in contact with…

Q: 5.17. Ice cream. Over the past years, the price of ice cream has varied between $3 and $6 per pound.…

A: The price of the ice cream is varying from one period to another. The price range is $3 to $6, which…

Q: Based on both Alex's current production and Barb's current production, select all that are true.

A: The Production Possibility Frontier (PPF), illustrates the possible quantities of two products that…

Q: The following graph is the production possibilities curve of a nation. Drill Presses 0987 10 A 8+…

A: Opportunity cost is the concept in economics that refers to the potential value or benefits that you…

Q: If the wage rate 'W' is $25 and the cost of capital is $25, calculate the average cost of producing…

A: Wage (w) = $25while cost of capital or rent (r)= $25.No of units in the long run=2000We know, total…

Q: Refer to the graph below. A $6.95 B) $3.25 C) $4.45 D) $4.85 E $5.45 F) $4.95 PRICE Select the…

A: The demand curve is the downward sloping curve. Supply curve is the upward sloping curve.…

Q: Because the demand for the matinee showing is ________________ elastic than the demand for the…

A: Elasticity refers to the responsiveness of price of a product to the quantity demanded of product.It…

Q: In the figure below, what will be the monopolist's profit-maximizing price? J H H G O H G J MR T V X…

A: A monopoly is an imperfect competitive market structure characterized by a single seller. The market…

Q: The demand for corn is given by: QD= 240 -P. The supply of corn is given by: QS= 9P -760. The…

A: Price support policy aimed at stabilising price of a good in market.Government has price support…

Q: Briefly explain whether this firm has a naturally monopoly.

A: A natural monopoly is an industry woth high barriers to entry and the start up cost is so high tgat…

Q: (Bonus Question) What result can we expect to see when goods are nonexcludable? A Consumers demand a…

A: Nonexcludable: Nonexcludable refers to a characteristic of a good where it is difficult or…

Q: Assume that a consumer has a given budget or income of $24 and that she can buy only two goods,…

A: Opportunity cost is the relationship between a given economic option and the best option that comes…

Q: Use an AD-AS framework to show the effect of monetary restriction on the output level, prices and…

A: "Monetary restriction" by and large alludes to activities or policies set up by central banks or…

Q: Based on the figure below, consumer surplus is $0 when price is greater than or equal to $ Price ($)…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve.The…

Q: Which of the following transactions are counted towards investment (I) by the BEA? a A private…

A: The spending by businesses, households, and the government on capital goods such as machinery,…

Q: Sofia, a political science student, thinks that the government should in reasons, can resolve the…

A: Coordination Problem:A coordination problem refers to a situation where individuals or agents in a…

Q: 2- Calculate the internal rate of return for the following investments: Initial Cost Annual Benefit…

A: One financial metric used to assess an investment or project's potential profitability is the…

Q: The entry of women into the workforce resulted in: Increase in quantity of labor Increase in labor…

A: A "workforce" alludes to every one individuals participated in or accessible for work, either in a…

Q: As a firm buys more capital and less labor, the marginal physical ________ and the marginal physical…

A: It describes a scenario in which, in a production process with at least one fixed factor of…

Q: Using the long-run average cost curve and at least two short-run average cost curves, illustrate why…

A: The LRAC curve is a graphical illustration that shows how an organization's average production costs…

Q: Which of the following statements is true? OA. Economics is a science since the study of economics…

A: Economics refers to a type of social science that usually focuses on how the individuals,…

Q: Capital Goods 0 A E B D C F PP PP₂ PP3 Consumer Goods Multiple Choice Refer to the diagram. An…

A: A Production Possibility Curve (PPC) is a graphical representation that shows the maximum output…

Q: The table below pertains to Pieland, an economy in which the typical consumer's basket consists of…

A: CPI is the consumer price index. CPI is calculated as the cost of basket in current year divided by…

Q: 0 8 C S: S Mutiple Choice D₂ Quantity S₁ and Dyrepresent the current market supply and demand,…

A: Optimum supply and demand in the market refers to demand and supply in the market at that point of…

Q: The government imposes a $2.50 per-unit tax on the production of good X. As a result the a. quantity…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…

Q: The table below contain an economy in which typical consumer's basket consists of 19 bushels of corn…

A: CPI is the consumer price index. The CPI is used to calculate the inflation rate. The CPI is…

Q: The total amount of producer surplus in a market is equal to A) the area between the demand curve…

A: Producer surplus is the benefit enjoyed by sellers by selling their product at market price higher…

Q: Jabari True Increase production from 4 to 5 fire engines because the True or False: If alternatively…

A: The person is only selling fire engines. The first four engines were manufactured at a lower cost…

Q: When the price of candy bars increased from $0.45 to $0.55, the quantity demanded changed from…

A: Price Elasticity of Demand:Price elasticity of demand is a measure of how sensitive the quantity of…

Q: 2. Here are two demand curves and two supply curves for a particular good. Quantities Supplied S₂ 9…

A: Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good…

Q: 14 A 12 10+ Bicycles 86 4 2 B 14 E D G 0 2 4 6 8 10 Computers Multiple Choice Refer to the diagram.…

A: The production possibility curve represents the maximum potential output combination of two goods or…

Q: Suppose that a firm has a production function f(K, L) = 12L¹/3K¹/3 and that w and r are input prices…

A: A production function is a mathematical relationship that describes the process of converting inputs…

Q: efer to Figure 12-6. Suppose this firm is being regulated using a policy of margim ost pricing. To…

A: The natural monopoly occurs when the average cost of production declines over the wide range of…

Q: True or False: Suppose your return on retirement account is 8%, and inflation rate is 9%, then you…

A: If your return on retirement account is 8% and the inflation rate is 9%, then you are losing money…

Q: QUESTION 1 For the production function Qs = K0.6L0.5 in the short run, where capital is at 307 find…

A: The marginal product of labor re­fers to the additional output or production achieved by adding one…

Q: The nominal exchange rate is the price of one currency in terms of another currency. A nominal…

A: The exchange rate (ER) denotes the worth of one currency in relation to another and is measured as a…

Q: Starting with a long run steady state equilibrium suppose consumer and investor confidence…

A: Aggregate Demand: Aggregate demand is the total quantity of goods and services demanded in an…