Which of the following cases will result in the largest decrease in equilibrium price?
Which of the following cases will result in the largest decrease in equilibrium price? The largest change in equilibrium quantity? Verify your answers by drawing graphs.
a. Demand is highly inelastic; there is a relatively large increase in supply
b. Demand is highly elastic; there is a relatively small increase in supply.
c. Supply is highly inelastic: there is a relatively small decrease in demand.
d. Supply is highly elastic and demand is very inelastic; there is a relatively large increase in supply
Homework Answers
Highly inelastic means increase in price decreases quantity demanded by less proportion. Increase in supply decreases quantity price and increase equilibrium quantity.
Highly elastic demand means minor increase in price decreases quantity demanded by more percentage.
Answer is a)
Add Answer to:
Which of the following cases will result in the largest decrease in equilibrium price?
If the quantity supplied responds only slightly to changes in price, then a. supply is said...
If the quantity supplied responds only slightly to changes in price, then a. supply is said to be elastic. b. supply is said to be inelastic. c. an increase in price will not shift the supply curve very much. d. even a large decrease in demand will change the equilibrium price only slightly.
23 minutes Save Progress Last Saved: 4.50 PM decrease Equilibrium price will decrease but equilibrium quantity...
23 minutes Save Progress Last Saved: 4.50 PM decrease Equilibrium price will decrease but equilibrium quantity will increase. O Equilibfium price and quantity will both decrease. Equilibriym price and quantity will both increase. 48) Ceteris paribuy equilibrium price and quantity would both increase at the same time as a (2 result of an increase in demand. a decrease in supply an jcrease in supply D decrease in demand. one of the other answers 1s orrect If supply and demand BOTH...
Holding demand constant, a decrease in supply will typically ___________ a. decrease equilibrium price but leave...
Holding demand constant, a decrease in supply will typically ___________ a. decrease equilibrium price but leave equilibrium quantity unchanged b. decrease equilibrium price and increase in equilibrium quantity c. increase both equilibrium price & quantity d. increase equilibrium price and decrease equilibrium quantity e. decrease both equilibrium price & quantity Holding supply constant, a decrease in demand will result in a(n) ___________ a. increase in equilibrium price & a decrease in equilibrium quantity b. increase in supply c, increase in...
D Question 25 1 pts Which of the following would result in an increase in equilibrium...
D Question 25 1 pts Which of the following would result in an increase in equilibrium price and an ambiguous change in equilibrium quantity? O a decrease in supply and demand O a decrease in supply and an increase in demand O an increase in supply and a decrease in demand O an increase in supply and demand
12. If the price decreases from $10 to $8 and the quantity demanded increases from 50...
12. If the price decreases from $10 to $8 and the quantity demanded increases from 50 units to 55 units the price-elasticity of demand at $10 is _______________________. Thus the price elasticity of demand is _______________________ and therefore total revenue can be increased by ________________________ the price. 13. The elasticity of demand gives the _______________ change in quantity demanded give the __________________ change in price. 14. If Demand is relatively elastic and Supply is also relatively elastic and the government...
If an 8% decrease in price leads to a 4% increase in the quantity demanded of...
If an 8% decrease in price leads to a 4% increase in the quantity demanded of the good, as a result of the price change, the total revenue for this product will: a) decrease b) increase c) not change d) double If a 12% increase in price leads to a 6% decrease in quantity demanded of the good, as a result of the price change, the total revenue for the product will: a) not change b) decrease c) increase d)...
17. In perfect competition, the marginal revenue of a firm always equals: A) product price. B)...
17. In perfect competition, the marginal revenue of a firm always equals: A) product price. B) total revenue. average total cost. D) marginal cost. 22. If the supply of product X is perfectly elastic, an increase in the demand for it will increase: A) equilibrium quantity but reduce equilibrium price. B) equilibrium quantity but equilibrium price will be unchanged. equilibrium price but reduce equilibrium quantity. equilibrium price but equilibrium quantity will be unchanged. 24. The main sources for the fluctuation...
25) What is measured by the price elasticity of supply? A) The price elasticity of supply...
25) What is measured by the price elasticity of supply? A) The price elasticity of supply measures how responsive producers are to changes in the price of other goods. B) The price elasticity of supply measures how responsive producers are to changes in income. C) The price elasticity of supply measures how responsive producers are to changes in the price of a product. D) The price elasticity of supply is a measure of the slope of the supply curve. E)...
3. In which of the following cases will the effect on equilibrium price be indeterminate (i.e.,...
3. In which of the following cases will the effect on equilibrium price be indeterminate (i.e., depend on the magnitudes of the shifts in supply and demand)? a. Demand increases and supply increases. b. Demand decreases and supply decreases c. Demand decreases and supply increases.d. Demand increases and supply decreases.e. more than one of the above. 4. Assume that good X and good Y are substitutes in consumption. Additionally, they are complements in production. Suppose that the price of good...
Principles of Economics Multiple choice short answer plz 15. Goods with many close substitutes tend to...
Principles of Economics Multiple choice short answer plz
15. Goods with many close substitutes tend to have a more elastic demands b. less elastic demands c price elasticities of demand that are unit elastic d. income elasticities of demand that are negative. 16. If the price elasticity of demand for a good is 4.0, then a 10 percent increase in price results in a a. 0.4 percent decrease in the quantity demanded. b. 2.5 percent decrease in the quantity demanded...
23 minutes Save Progress Last Saved: 4.50 PM decrease Equilibrium price will decrease but equilibrium quantity will increase. O Equilibfium price and quantity will both decrease. Equilibriym price and quantity will both increase. 48) Ceteris paribuy equilibrium price and quantity would both increase at the same time as a (2 result of an increase in demand. a decrease in supply an jcrease in supply D decrease in demand. one of the other answers 1s orrect If supply and demand BOTH...
D Question 25 1 pts Which of the following would result in an increase in equilibrium price and an ambiguous change in equilibrium quantity? O a decrease in supply and demand O a decrease in supply and an increase in demand O an increase in supply and a decrease in demand O an increase in supply and demand
17. In perfect competition, the marginal revenue of a firm always equals: A) product price. B) total revenue. average total cost. D) marginal cost. 22. If the supply of product X is perfectly elastic, an increase in the demand for it will increase: A) equilibrium quantity but reduce equilibrium price. B) equilibrium quantity but equilibrium price will be unchanged. equilibrium price but reduce equilibrium quantity. equilibrium price but equilibrium quantity will be unchanged. 24. The main sources for the fluctuation...
Principles of Economics Multiple choice short answer plz
15. Goods with many close substitutes tend to have a more elastic demands b. less elastic demands c price elasticities of demand that are unit elastic d. income elasticities of demand that are negative. 16. If the price elasticity of demand for a good is 4.0, then a 10 percent increase in price results in a a. 0.4 percent decrease in the quantity demanded. b. 2.5 percent decrease in the quantity demanded...
Most questions answered within 3 hours.
-
suppose there is a normally distributed population with a mean of
250 and a standard deviation...
asked 37 minutes ago -
Question Three
Suppose you as project manager are using the Waterfall
development methodology on a large...
asked 1 hour ago -
Which statement is not true about welfare in Canada?
A.Benefits typically vary based on one's ability...
asked 2 hours ago -
Please help me with FLOWCHART and UML diagram for class,
thank you!
#include <iostream>
#include <fstream>...
asked 2 hours ago -
3. Describe the “logic circuit” of the Lac operon. Which
proteins are bound or not to...
asked 2 hours ago -
Ayesha’s adjusted gross income is $60,000 in 2019. She donated a
piece of artwork with a...
asked 3 hours ago -
For Dijkstra’s shortest path algorithm:
a. Give the Big-O time for Dijkstra’s shortest path algorithm
and...
asked 3 hours ago -
Phosphorus violates the 'octet rule' in biological molecules,
forming more covalent bonds than expected based on...
asked 3 hours ago -
A 1.3 eV electron has a 10-4 probability of tunneling
through a 2.4 eV potential barrier....
asked 3 hours ago -
What is the one ingredient that is common to being successful
with all stakeholders?
profit
trust...
asked 3 hours ago -
Write an assembly language 32 bit program that reads in lines of
text by a .txt...
asked 3 hours ago -
what is the density ( in g/L) of hydrogen gas at 29 degrees C and a...
asked 3 hours ago