Homework Answers
It can actually be mentioned that during a bubble there will be high price and there would be no people willing to buy with that price and this causes the people to invest elsewhere and this is the substitute and this causes the price to drop steeply and this is referred to as bursting of a bubble
Therefore (c) as price increases,more substitute products emerge is the answer to the question
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QUESTION 47 Why are bubbles likely to burst (i.e. price rise followed by sharp price fall)?...
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...
Please help with these questions, Question 5 0.16 pts When firms in a market expect the...
Please help with these questions,
Question 5 0.16 pts When firms in a market expect the price of their products to rise, the supply curve of their goods causing the equilibrium price to O decreases; rise increases; rise and the equilibrium quantity to fall decreases; fall increases; fall O increases; rise Question 6 0.16 pts Taxes cause the equilibrium price of a good to Ogo up only for producers. O decrease O go down only for consumers O increase. remain...
Which would most likely shift the aggregate supply curve? A change in the prices of _____....
Which would most likely shift the aggregate supply curve? A change in the prices of _____. domestic products foreign products financial assets resources A decrease in aggregate demand in the short run will reduce _____. both real output and the price level the price level and increase the real domestic output the real domestic output and have no effect on the price level the price level and have no effect on real domestic output The economy's long-run AS curve assumes...
QUESTION 13 Consider the market for new residential houses in the Richmond metropolitan area. If the...
QUESTION 13 Consider the market for new residential houses in the Richmond metropolitan area. If the local economy "booms" and incomes rise, we would expect the average home price to fall the average home price to rise home prices to stay stable home prices to fluctuate wildly depending on the whether the Washington Redskins are winning or losing QUESTION 14 Consider the market for Diet Coke. If the price of Diet Pepsi (a substitute good) increases, then we would expect...
0/0.1 pts Incorrect Question 62 If a small increase in the price of a good reduces...
0/0.1 pts Incorrect Question 62 If a small increase in the price of a good reduces quantity demanded to zero, demand is and the price elasticity of demand is equal to perfectly inelastic; zero perfectly elastio, iufiaty unit elastic, one perfectly elastic zero 0.1/0.1 pts Question 63 Question 73 Incorrect 0/0.1 pts If Smith will give up three units of Y to get one additional unit of X, then he has transitive preferences/ his budget constraint is upward slopimg. his...
QUESTION 36 If the producers of cotton shirts face higher cotton prices, which of the following...
QUESTION 36 If the producers of cotton shirts face higher cotton prices, which of the following is likely to occur? The supply of cotton shirts decreases, the equilibrium price of cotton shirts rises, and the equilibrium quantity falls. The supply of cotton shirts decreases, the equilibrium price of cotton shirts rises, and the equilibrium quantity rises. The supply of cotton shirts increases, the equilibrium price of cotton shirts rises, and the equilibrium quantity falls. The supply of cotton shirts increases,...
(8 marks total) QUESTION 11 a) Why are both the price elasticity of demand and the price elasticity of supply likely to...
(8 marks total) QUESTION 11 a) Why are both the price elasticity of demand and the price elasticity of supply likely to be greater in the long run? (3 marks) b) Choose a good and draw both a demand and supply curve for that good. Explain and show how an increase in household income would affect the equilibrium price and quantity. (5 marks) QUESTION 12 A firm will continue producing in the short run even if it is making a...
59. Market equilibrium A market equilibrium is a quantity-price pair in which: A. The government equates the selling and buying price of The price is such that the quantity demanded is equal to t...
59. Market equilibrium A market equilibrium is a quantity-price pair in which: A. The government equates the selling and buying price of The price is such that the quantity demanded is equal to the The level of happiness among people is as high as possible. supplied quantity supp A price increase would cause people to want to buy 1 of the good. E. The supply curve and demand curve are equivalent. The Marginal Product of Labor (MPL) is equal to...
(a) What determines the price in a market? (b) Why is this price considered efficient? (c)...
(a) What determines the price in a market? (b) Why is this price considered efficient? (c) Why do prices in markets rise and fall? (d) Why is it actually wrong to say that “If the price in a market increases, then that’s a bad thing? (a) In economics, what are inferior goods? (b) Are inferior goods always of inferior quality? (c) In the market for adult entertainment, identify two goods that are substitutes. (d) In the market for plastic surgery,...
Please help with these questions,
Question 5 0.16 pts When firms in a market expect the price of their products to rise, the supply curve of their goods causing the equilibrium price to O decreases; rise increases; rise and the equilibrium quantity to fall decreases; fall increases; fall O increases; rise Question 6 0.16 pts Taxes cause the equilibrium price of a good to Ogo up only for producers. O decrease O go down only for consumers O increase. remain...
QUESTION 13 Consider the market for new residential houses in the Richmond metropolitan area. If the local economy "booms" and incomes rise, we would expect the average home price to fall the average home price to rise home prices to stay stable home prices to fluctuate wildly depending on the whether the Washington Redskins are winning or losing QUESTION 14 Consider the market for Diet Coke. If the price of Diet Pepsi (a substitute good) increases, then we would expect...
0/0.1 pts Incorrect Question 62 If a small increase in the price of a good reduces quantity demanded to zero, demand is and the price elasticity of demand is equal to perfectly inelastic; zero perfectly elastio, iufiaty unit elastic, one perfectly elastic zero 0.1/0.1 pts Question 63 Question 73 Incorrect 0/0.1 pts If Smith will give up three units of Y to get one additional unit of X, then he has transitive preferences/ his budget constraint is upward slopimg. his...
QUESTION 36 If the producers of cotton shirts face higher cotton prices, which of the following is likely to occur? The supply of cotton shirts decreases, the equilibrium price of cotton shirts rises, and the equilibrium quantity falls. The supply of cotton shirts decreases, the equilibrium price of cotton shirts rises, and the equilibrium quantity rises. The supply of cotton shirts increases, the equilibrium price of cotton shirts rises, and the equilibrium quantity falls. The supply of cotton shirts increases,...
(8 marks total) QUESTION 11 a) Why are both the price elasticity of demand and the price elasticity of supply likely to be greater in the long run? (3 marks) b) Choose a good and draw both a demand and supply curve for that good. Explain and show how an increase in household income would affect the equilibrium price and quantity. (5 marks) QUESTION 12 A firm will continue producing in the short run even if it is making a...
59. Market equilibrium A market equilibrium is a quantity-price pair in which: A. The government equates the selling and buying price of The price is such that the quantity demanded is equal to the The level of happiness among people is as high as possible. supplied quantity supp A price increase would cause people to want to buy 1 of the good. E. The supply curve and demand curve are equivalent. The Marginal Product of Labor (MPL) is equal to...
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