Suppose expected future prices fall. What effect would this have in the graph?
Consider the demand for a good illustrated in the figure below. Suppose expected future prices fall. What effect would this have in the graph?
This would result in a slide down the demand curve.
This would result in a slide up the demand curve
This would result the demand curve shifting to the let
This would result the demand curve shifting to the right 09 0
Homework Answers
Yes the correct answer is option B i.e. this would result in a slide up the demand curve
Since if only price change then there would be no shift in demand curve only there would be movement on the demand curve
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Suppose expected future prices fall. What effect would this have in the graph?
Question 1 (1 point) Consider the demand for a good illustrated in the figure below. Suppose...
Question 1 (1 point) Consider the demand for a good illustrated in the figure below. Suppose the price of a complement decreases. What effect would this have in the graph? p. Price po Do Qo Quantity This would result in a slide down the demand curve This would result in a slide up the demand curve. This would result the demand curve shifting to the left 4 5 6 Question 2 (1 point) Consider the demand for a good illustrated...
Consider the demand for a good illustrated in the figure below.
Consider the demand for a good illustrated in the figure below. Suppose the population decreases. What effect would this have in the graph? This would result in a slide down the demand curve. This would result in a slide up the demand curve. This would result the demand curve shifting to the leftThis would result the demand curve shifting to the right.
Consider the supply of a good illustrated in the graph below.
Consider the supply of a good illustrated in the graph below. Suppose firms exit the industry. What effect would this have in the graph? This would result in a slide down the supply curve. This would result in a slide up the supply curve. This would shift the supply curve to the right.
Starting from the top drop down questions: 1. Fall / rise 2. 18% / 12% /...
Starting from the top drop down
questions:
1. Fall / rise
2. 18% / 12% / 3% / 9% / 6% / 15 %
3. increase / decrease
4. up / down
5. more / less
6. an increase / no change / a decrease
7. an increase / no change / a decrease
8. an increase / no change / a decrease
3. The Keynesian transmission mechanism Suppose the Federal Reserve shifts to an expansionary monetary policy by buying...
An expected increase in the prices of consumer goods in the near future will: Decrease in...
An expected increase in the prices of consumer goods in the near future will: Decrease in the quantity of real output demanded (or movement up along AD) Increase in the quantity of real output demanded for movement down along AD) Decrease (or shift left) in aggregate demand now Increase (or shift right) in aggregate demand now Previous Next →
The following graph shows the economy in long-run equilibrium atthe expected price level of 120...
The following graph shows the economy in long-run equilibrium at
the expected price level of 120 and the natural level of output of
$600 billion. Suppose a sudden and severe contraction in the
housing market reduces the value of homes and causes consumers to
spend less.Shift the short-run aggregate supply (AS) curve or the aggregate
demand (AD) curve to show the short-run impact of
the housing market slump.In the short run, the decrease in consumption spending
associated with the housing...
Suppose the Indian Ocean tsunami destroyed coffee production in Indonesia. On international coffee markets, this would...
Suppose the Indian Ocean tsunami destroyed coffee production in Indonesia. On international coffee markets, this would cause a a movement up and to the right along the supply curve for coffee. b a movement down and to the left along the supply curve for coffee. c a leftward shift of the coffee demand curve. d a leftward shift of the coffee supply curve. e a rightward shift of the coffee supply curve. If firms expect lower prices in the future,...
14. no cursive please 14. Describe the effect of the following events would on the aggregate...
14. no cursive please
14. Describe the effect of the following events would on the aggregate demand (AD) curve in the U.S. Answer with SR- shifts right, SL-shifts left, MU-move up curve, or MD-move down curve. (a) A boost in research and development by computer companies produces more powerful and efficient computers and equipment. ans. (b) Income falls in several countries that trade heavily with the U.S. ans: (c) Prices fall in the economy ans: (d) After a budget surplus,...
Question Six (worth ten points) Refer to Graph Two in answering the parts of this question....
Question Six (worth ten points) Refer to Graph Two in answering the parts of this question. Assume that initially we are at equilibrium at point M and that the cost to each firm of producing a unit of the good goes down by $15 per unit. This shifts the supply curve to the right. (a) How much did supply go up (measured in units of the good)? There is an excess supply at the price of $50. This excess demand,...
7. Understanding the Fisher effect Aa Aa The following graphs show the loanable funds market. The...
7. Understanding the Fisher effect Aa Aa The following graphs show the loanable funds market. The upward-sloping orange line represents the supply of loanable funds, and the downward-sloping blue line represents the demand for loanable funds. For each of the following scenarios, use the graph to show how the market will react to the given change in the expected future inflation rate. The following graph shows the demand and supply curves for loanable funds when the expected future inflation rate...
Question 1 (1 point) Consider the demand for a good illustrated in the figure below. Suppose the price of a complement decreases. What effect would this have in the graph? p. Price po Do Qo Quantity This would result in a slide down the demand curve This would result in a slide up the demand curve. This would result the demand curve shifting to the left 4 5 6 Question 2 (1 point) Consider the demand for a good illustrated...
Starting from the top drop down
questions:
1. Fall / rise
2. 18% / 12% / 3% / 9% / 6% / 15 %
3. increase / decrease
4. up / down
5. more / less
6. an increase / no change / a decrease
7. an increase / no change / a decrease
8. an increase / no change / a decrease
3. The Keynesian transmission mechanism Suppose the Federal Reserve shifts to an expansionary monetary policy by buying...
An expected increase in the prices of consumer goods in the near future will: Decrease in the quantity of real output demanded (or movement up along AD) Increase in the quantity of real output demanded for movement down along AD) Decrease (or shift left) in aggregate demand now Increase (or shift right) in aggregate demand now Previous Next →
The following graph shows the economy in long-run equilibrium at
the expected price level of 120 and the natural level of output of
$600 billion. Suppose a sudden and severe contraction in the
housing market reduces the value of homes and causes consumers to
spend less.Shift the short-run aggregate supply (AS) curve or the aggregate
demand (AD) curve to show the short-run impact of
the housing market slump.In the short run, the decrease in consumption spending
associated with the housing...
14. no cursive please
14. Describe the effect of the following events would on the aggregate demand (AD) curve in the U.S. Answer with SR- shifts right, SL-shifts left, MU-move up curve, or MD-move down curve. (a) A boost in research and development by computer companies produces more powerful and efficient computers and equipment. ans. (b) Income falls in several countries that trade heavily with the U.S. ans: (c) Prices fall in the economy ans: (d) After a budget surplus,...
Question Six (worth ten points) Refer to Graph Two in answering the parts of this question. Assume that initially we are at equilibrium at point M and that the cost to each firm of producing a unit of the good goes down by $15 per unit. This shifts the supply curve to the right. (a) How much did supply go up (measured in units of the good)? There is an excess supply at the price of $50. This excess demand,...
7. Understanding the Fisher effect Aa Aa The following graphs show the loanable funds market. The upward-sloping orange line represents the supply of loanable funds, and the downward-sloping blue line represents the demand for loanable funds. For each of the following scenarios, use the graph to show how the market will react to the given change in the expected future inflation rate. The following graph shows the demand and supply curves for loanable funds when the expected future inflation rate...
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