ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 4, Problem 3.5P
To determine
The law of supply with the help of an example and to state the relationship between the law of supply and the supply curve.
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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?
16-
The Law of supply states that other things remaining the same_________
a.
There is no relationship between price and quantity supplied
b.
There is an inverse relationship between price and quantity supplied
c.
None of these
d.
There is a direct relationship between price and quantity supplied
17.- Mention and explain what each of the types of supply , for the analysis of the supply.
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- 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 increasesarrow_forwardD7) Economics How do price ceilings in the rental housing market affect tenants? A. Since price ceilings keep rents from rising above a certain level, the net gain to tenants is positive. B. Tenants are worse off from price ceilings since the supply of rental housing falls in the long run. C.Tenants benefit from price ceilings since landlords have incentives to improve the quality of existing rental housing D. Since the supply of rental housing is inelastic in the short run, tenants are not affected by a price ceiling.arrow_forward36. Define the Law of Supplyarrow_forward
- 41-Write the differences between increase in supply and decrease in supply.arrow_forward14. Application: Demand elasticity and agriculture Consider the market for apples. The following graph shows the weekly demand for apples and the weekly supply of apples. Suppose new farming technology is developed that enables growers to produce more crops with the same resources. Show the effect this shock has on the market for apples by shifting the demand curve, supply curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.arrow_forward3. In the market for Philadelphia Phillies baseball tickets, a determinant of supply would be ______ while demand determinants would include _____________. The price of the tickets; household wealth in the Philadelphia area. Input costs and consumer tastes; the level of competition in the ticket-selling industry. The price of substitutes for these tickets; the price of tickets. The price of parking at Phillies baseball games; the number of sellers of competing sporting events in the area. A and C onlyarrow_forward
- Question 2a: This one is specifically about natural gas! Please use the chart below to show three functions: the demand for natural gas, the supply of natural gas prior to the new natural gas discoveries (label it 2000), and the current supply of natural gas (label it this year). Further, on the chart show the year 2000 natural gas price and the current year price. For this question assume that there is no change in demand for natural gas from 2000 to this year. 2b. Look at the price changes you presented for natural gas in part a. For this question discuss how this price change could effect markets/products which rely heavily on natural gas. An example product that relies heavily on natural gas is electricity. (You can write about electricity or another product if you prefer.)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_forwardUsing Exercise 16.20, sketch the effects in parts (a) and (b) on a single supply and demand diagram. What prediction would you make about how the improved information alters the equilibrium quantity and price?arrow_forward
- 11) Suppose that it is observed that the price of a commodity rises and that the quantity sold falls. From this we can deduce A) that the demand curve has shifted to the left, but we cannot deduce whether or not the supply curve has shifted. B) that the demand curve has shifted to the right, but we cannot deduce whether or not the supply curve has shifted. C) that the supply curve has shifted to the right, but we cannot deduce whether or not the demand curve has shifted. D) that the supply curve has shifted to the left, but we cannot deduce whether or not the demand curve has shiftedarrow_forward4- The increase in the quantity supplied of the good as its price rises is expressed as …………. a) inferior goods B) Value paradox NS) law of supply D) Marginal propensity to import TO) law of demandarrow_forwardQuestion 6 Listen Consider the market for pilots. What is likely to happen to the equilibrium wage and quantity of pilots if the government enforces a lower mandatory retirement age, say from age 65 to age 62? A) The equilibrium wage and the equilibrium quantity of pilots remain the same. B) The equilibrium wage and the equilibrium quantity of pilots rise. C) The equilibrium wage and the equilibrium quantity of pilots fall. D) The equilibrium wage falls and the equilibrium quantity of pilots rises. O E) The equilibrium wage rises and the equilibrium quantity of pilots falls. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
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