Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
9th Edition
ISBN: 9781259290619
Author: Michael Baye, Jeff Prince
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 2CACQ
To determine
(a)
To explain:
The impact on supply of good Y due to decrease in price of input A.
To determine
(b)
To explain:
The impact on supply of good X due to imposition of excise tax of $3.
To determine
(c)
To explain:
The impact on supply of good X due to imposition of ad valeorm tax of 7 percent.
To determine
(d)
To explain:
The impact on supply of good X due to technology change.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations: a. The price of input A decreases. b. An excise tax of $3 is imposed on good X. c. An ad valorem tax of 7 percent is imposed on good X. d. A technological change reduces the cost of producing additional units of good X.
Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations:a. The price of input A decreases.
It will not change.
It will increase.
It will decrease.
b. An excise tax of $3 is imposed on good X.
It will not change.
It will increase.
It will decrease.
c. An ad valorem tax of 7 percent is imposed on good X.
It will increase.
It will not change.
It will decrease.
d. A technological change reduces the cost of producing additional units of good X.
It will increase.
It will decrease.
It will not change.
Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations:a. The price of input A increases.
It will increase.
It will not change.
It will decrease.
b. An excise tax of $4 is imposed on good X.
It will not change.
It will decrease.
It will increase.
c. An ad valorem tax of 5 percent is imposed on good X.
It will decrease.
It will not change.
It will increase.
d. A technological change reduces the cost of producing additional units of good X.
It will increase.
It will decrease.
It will not change.
Chapter 2 Solutions
Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
Knowledge Booster
Similar questions
- Pick a good or service that is produced in a competitive market. Explain why it satisfies the assumption of a competitive market. Pick a good or service not produced in a competitive market. Explain which assumption is violated.arrow_forward1. Resource X is necessary in the production of good Y. If the price of resource X decreases A. the supply curve of Y shifts leftward. B. the supply curve of Y shifts rightward. C. the supply curve of Y is unaffected. D. there is a movement down along the supply curve of Y. E. there is a movement up along the supply curve of Y.arrow_forwardcheck all that apply; a change in ___ will cause a shift in the entire supplu curve input prices the price of a complement good consumer income production technology the number of sellers..arrow_forward
- A supply curve slopes upward because Question 4 options: a) as more is produced total cost of production decreases b) an increase in input prices increases supply c) the quantity supplied of most goods increases over time d) an increase in price gives producers an incentive to supply a larger quantityarrow_forwardAn increase in the cost of an input will cause the supply curve to shift _______ and result in an equilibrium price that is _______. a. right, higher b. left, higher c. left, lower d. right, lowerarrow_forwardMultiple choice - microeconomics 43) What will entry into a market by new firms do? A. It will increase the price of the good B. It will increase profits of existing firms C. It will increase the costs of existing firms D. It will increase the supply of the good. 42) What is one consideration that applies to the analysis of a market over the long run but not to the analysis over the short run? A. changes in firms’ cost structures B. changes in the numbers of firms in the market C. changes in the price of the product D. changes in firms’ profitsarrow_forward
- Thank you for your response. After further reasearch I found: a. The Marginal Rate of Substitution b. The Marginal rate of Technical Substitution c. The Marginal rate of Transformation in terms of Pareto Optimality, the perfectly competitive market and general equilibrium how are those three concepts related to a. Product Efficiency b. Consumption Efficiency c. Product Mix Efficiencyarrow_forwardwhich statement is true and why are the others false.justify Moving production from a high-cost producer to a low-cost producer will decrease total surplus;TRUE Suppose the United States changed its laws to allow for the legal sale of a kidney and the government allowed a free market in organs for transplant then there would be a decrease in the price of a kidney and an increase in the shortage of kidneys for transplant;TRUE If a good is not being produced by sellers with the lowest cost, then the market reflects inefficiency in the allocation of resources:FALSE Assume there are only three sellers in a particular market. The cost of production for Annie is $50, for Beth it is $40 and for Cathy it is $35. If the price in the market is $45 then Annie will sell the product but Beth and Cathy will not sell. :FALSE Suppose favorable weather provides increases apple production. As a result, consumer surplus in the market for orange juice decreases because the supply curve of apple juice…arrow_forwardWhich of the following would shift the supply curve for a commodity to the RIGHT? a. An increase in the price of a substitute of the commodity in production. b. An increase in consumer income.c. A decrease in the number of firms that produce that commodity. d. A decrease in the price of an input used to produce that commodity.arrow_forward
- 7. Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X if an ad valorem tax of 5% is imposed on good X . * a. Increase b. Decrease c. None of the above 8. Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X if a technological change reduces the cost of producing additional units of X . * a. Increase b. Decrease c. None of the above 9. Suppose the supply function for product X is given by QxS = - 50 + 0.5Px - 5Pz. How much of product X is produced when Px $500 and Pz $30? * a. - 50 b. +50 c. 150 d. None of the above 10. An economist estimated the cross-price elasticity for peanut butter and jelly to be 1.5 . Based on this information , we know the goods are * a. inferior goods b. complements c. inelastic d. substitutesarrow_forwardThe task I am struggling with: Determine the supply and demand function and the equilibrium point.Graph the results.Demand. If a given product is priced at $7 per unit, there is a demand for 4 units;if a given product is priced at $6 per unit, there is a demand for 8 units.Supply. If a given product is priced at $9 per unit, suppliers are willing to produce4 units; if a given product is priced at $23 per unit, suppliers are willing toproduce 12 units. Thank you very much.arrow_forwardSuppose there is a decrease in supply and an associated decrease in the quantity demanded. Which of the following events are consistent with this situation? technology has improved input prices have increased none of the other choices are correct some buyers have left the marketarrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc