ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
thumb_up100%
Chapter 4, Problem 3.4P
To determine
The reason the firm increases the quantity supplied when the price of the good increases.
Concept Introduction:
Law of supply states that as the price of the good, increases the quantity supplied of the good increases and vice-versa, other things remaining same.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
28-The cost driver for demand creation activity is:
a.
Increase in sales
b.
Number of orders
c.
Value of stock
d.
Value of materials stored
Question 31
Referring to the panels, which of the four panels represents the market for high-rise building construction as a result of an increase in steel prices?
Group of answer choices
Panel (a)
Panel (d)
Panel (c)
Panel (b)
Question 54
If there is a scientific discovery that eating peanuts cures cancer then which of the following occurs in the market for peanuts?
Question 54 options:
a)
supply decreases
b)
demand decreases
c)
supply increases
d)
demand increases
Knowledge Booster
Similar questions
- The demand for skilled workers in the United States has been increasing. To increase the supply of skilled workers, many argue that immigration reform to allow more skilled labor into the United States is needed. Explain whether you agree or disagree.arrow_forward24. Omani government wanted to reduce the supply of high sugar drinks in the economy. As an economist, you will ask the government to _________. a. Decrease Tax on the high sugar drinks b. Give more subsidies to the producers of high sugar drinks c. Provide access to new technology for the producers of high sugar drinks d. Increase Tax on the high sugar drinksarrow_forwardTrue/False The market supply increases as the price level in the market rises.arrow_forward
- 4-1 You have noticed that the price of season tickets to your university’s football matches keeps increasing but the supply of tickets remains the same. Why might supply be unresponsive to changes in price? In the longer term, would it be more responsive? How?arrow_forward27.Increase and decrease in supply is due to ______________________factors keeping the price constant.arrow_forward16- There are many Milk producers in Cuba. Due to oversupply of Milk, the price of Milk is going down in the market. As an economist you will request Cuban government to fix ______________. a. Price ceiling and import of Milk b. Price floor and import of Milk c. Price floor and export of Milk d. Price ceiling and export of Milkarrow_forward
- Define Supply and Demand Give examples supply and demand regarding the oil prices in the US.arrow_forwardScenario 1: The economy enters a recession driving down the demand for homes nationwide.arrow_forward1. Which of the following variables does not directly impact the quantity of a good the firm is willing to produce? a. the price of the good b. the income level of the people who buy the good c. the number of firms producing the good d. the cost of a key input used to produce the goodarrow_forward
- 25- Omani government wanted to reduce the supply of high sugar drinks in the economy. As an economist, you will ask the government to _________. a. Give more subsidies to the producers of high sugar drinks b. Increase Tax on the high sugar drinks c. Decrease Tax on the high sugar drinks d. Provide access to new technology for the producers of high sugar drinksarrow_forward20- Supply curve is rising upwards from left to right, this is due to __________. a. Negative relationship between price and quantity demanded b. Negative relationship between price and quantity supplied c. Positive relationship between price and quantity supplied d. Positive relationship between price and quantity demandedarrow_forwardA semiconductor is a key component in your laptop, cell phone, and iPod. The table provides information about the market for semiconductors in the United States. Producers of semiconductors can get $18 a unit on the world market. Price (dollars per unit) Quantity demanded Quantity(billions of units per year) Quantity supplied(billions of units per year) 10 25 0 12 20 20 14 15 40 16 10 60 18 5 80 20 0 100 Draw a graph (graph is for your own reference, not required to be attached in the answer sheet) to illustrate the U.S. supply and demand market for semiconductors. What is the price with free international trade? What is the quantity of semiconductors produced in U.S. and total quantity bought by U.S. people and the quantity exported from other countries? (3 marks) Due to loss of competitiveness brought on by appreciation of the exchange rate and the high production costs, U.S. government reduce the export (or limit the…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax