Question

Please help with these questions

Question 26 0.4 pts When one producer has a comparative advantage in production, he or she O is unable to reach his or her production possibilities frontier (PPF) O does not benefit from trade with other producers. trades only with others who have the same comparative advantage. can produce a good at a lower opportunity cost than someone else. O can produce more output than someone else using the same quantity of resources, Question 27 0.4 pts Leading economic indicators suggest that incomes will be going up next year. In response to these reports, companies are forecasting increased prices for future sales of their goods. As a result of these increases, the supply curve will O shift to the right, causing the equilibrium price to decrease. remain the same, but the equilibrium price will increase. shift to the left, causing the equilibrium price to increase. O shift to the right, causing the equilibrium price to increase. O remain the same, but the equilibrium price will decrease. Question 28 0.4 pts Which one of the following pairs of goods is likely to have a negative cross- price elasticity of demand? tennis shoes and flip-flops soda and water O coffee and cream O spaghetti and ravioli O tea and coffee

Answer 1

26. Ans: Can produce a good at a lower opportunity cost than someone else.

27. Ans: Remain the same , but the equilibrium price will increase.

28. Ans: Coffee and cream

Explanation:

Negative cross price elasticity of demand represents that both the goods are complementary.

29. Ans: Other things being equal.

30. Ans: In a city , there is one Ethiopian restaurant.

Explanation:

Monopoly means there is a single seller in the market.