EBK MICROECONOMICS
13th Edition
ISBN: 8220106798652
Author: Arnold
Publisher: CENGAGE L
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Question
Chapter 4, Problem 6WNG
To determine
The relative price.
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Assume there are only two goods (X and Y). Assume the relative price of good X, is 2 of good Y. If income doubles, the price of X doubles and the price of Y doubles, what will be the relative price of good Y?
When Good A and Good B are complements in production and there is a decrease in the price of Good A, what happens in Good B's market?
Goods A and B are substitutes in production. The price of good A rises. As a result,
the equilibrium price of good B and the equilibrium quantity.
A) rises; decreases
B) falls; increases
C) falls; decreases
D) rises; increases
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- Consider two goods, X and Y. The price of product X increases from R6 to R8 per unit. As aresult, the quantity demanded of product Y decreases from 200 to 190 units. Q: Give at least two real-world examples of goods like X and Y.arrow_forwardIve asked this before but the answer wasn't what I was looking for- for the price of fertilizers that use petrochemical in regards to the price of oil. How big of a role does oil play? Is the price of the good greatly affected by the price of oil?arrow_forwardIs it true that all buyers and sellers are content with the market price if a market is in equilibrium? Describe in detailarrow_forward
- Assume that the markets for sugar cane, rum and whiskey are initially in equilibrium (i.e., supply equals demand in each case). Assume further that a good harvest impacts the world’s sugar cane crop. Sugar cane is a principal ingredient in rum, but it is not an ingredient in whiskey. Rum and whiskey are substitutes in consumption. Discuss the impact of the good harvest on each of the three markets. Discuss the effect on the markets for each of the three products if the government implements a price restriction in the sugar cane market with the aim of protecting the farmers. How will this impact the revenues for sugar growers, rum producers and whiskey producers?arrow_forwardThe supply curve of some good is vertical. What will be the effects of a fall in demand for it? explain When two people exchange a good for money, we know that they both benefit. If so, why are economists generally uninterested in which of these people receives more of the gains from the exchange? explainarrow_forwardMost people demand goods and services much less than they want. True or False? Explain your answer. How might the price of wheat affect the supply of rice?arrow_forward
- Over the years, the demand for textiles in Country A has grown in spite of rising prices. How would you reconcile this fact with the law of demand?arrow_forwardYou attend a movie and notice that there are hundreds of empty seats.what might you conclude about the market price of the concert ticket?arrow_forwardWhat if the price at a given time was less than the equilibrium price?arrow_forward
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