Assume that corn is an input in the production of beef but not in the production...
Assume that corn is an input in the production of beef but not in the production of pork. Further, beef and pork are substitutes. An increase in the price of corn will:
- increase the supply of beef and increase the demand for pork.
- decrease the supply of beef and decrease the demand for pork.
- increase the supply of beef and decrease the demand for pork.
-decrease the supply of beef and increase the demand for pork.
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Assume that corn is an input in the production of beef but not
in the production...
9. A shift to the right of the demand curve could be caused by a(n): A...
9. A shift to the right of the demand curve could be caused by a(n): A decrease in tastes or preferences. B decrease in the price of a substitute. C increase in income if the good is normal. D increase in the price of a complement. 10. Suppose that summer in a resort town is very rainy. We can expect demand to shift and the equilibrium price for hotels to . A left; fall B left; rise C right; fall...
7. Suppose an increase in the world price of corn is sustained throughout a long time...
7. Suppose an increase in the world price of corn is sustained throughout a long time period. The supply of corn over time will likely, a. become more elastic because consumers have more choices over longer time horizons. b. become more elastic because it takes corn a relatively long amount of time to mature from planting to harvest. c. become less elastic (more inelastic) because consumers have fewer choices over longer time horizons. d. become less elastic (more inelastic) because...
Suppose there is a decrease in the price of corn. If corn is an input into...
Suppose there is a decrease in the price of corn. If corn is an input into the production of ethanol, we would expect the supply curve for ethanol to shift rightward. shift leftward. become flatter. remain unchanged.
This question will deal with demand, supply, equilibrium and comparative statics in a specific market: the...
This question will deal with demand, supply, equilibrium and comparative statics in a specific market: the market for pork. We will use specific equations for Demand and Supply of pork which come from an academic paper: “Production Subsidy and Countervailing Duties in Vertically Related Markets: The Hog-Pork Case Between Canada and the United States” written by Giancarlo Moschini and Karl D. Meilke which appeared in American Journal of Agricultural Economics, Vol. 74, No. 4 (Nov., 1992), pp.951-961. The authors estimated...
What happens to the market for corn if there is a drought that affects corn growers?...
What happens to the market for corn if there is a drought that affects corn growers? Select one: O a. A rightward shift in supply, a decrease in price, and an increase in quantity O b. A leftward shift in supply, an increase in price, and a decrease in quantity O c. A decrease in supply, an increase in demand, and an increase in price O d. A decrease in supply, a decrease in demand, and a decrease in price
What happens to the market for corn if there is a drought that affects corn growers?...
What happens to the market for corn if there is a drought that affects corn growers? Select one: O a. A rightward shift in supply, a decrease in price, and an increase in quantity O b. A leftward shift in supply, an increase in price, and a decrease in quantity O c. A decrease in supply, an increase in demand, and an increase in price O d. A decrease in supply, a decrease in demand, and a decrease in price
7. If the supply elasticity of pork is 0.46, by how much will quantity supplied increase...
7. If the supply elasticity of pork is 0.46, by how much will quantity supplied increase if price increases by three percent? Is the supply for pork elastic or inelastic? 8. If the income elasticity of demand for rice is -0.27, what effect will a four percent increase in income have on rice consumption? What can we infer about rice as a result of this elasticity calculation? 9. If cross-price elasticity for chicken with respect to the price of beef...
Consider the market for beef. Assume doctors produce new research showing the consumption of beef is...
Consider the market for beef. Assume doctors produce new research showing the consumption of beef is associated with high blood pressure and heart disease. What do you think will happen to the market of beef? Demand would decrease, reducing prices and increasing quantity sold Demand would fall, reducing prices and reducing quantity sold. Quantity demanded would fall because of higher beef prices Demand would shift right, increasing prices and reducing beef consumption. Consider the market for wholesale electricity. What would...
NI There is but one correct answer to each multiple choice question. If Demand decreases by...
NI There is but one correct answer to each multiple choice question. If Demand decreases by a greater amount than Supply decreases, then Pricean a. Increases, decreases b Deceases, increases c. Decreases, decrease 1. d. Increases, increase 2. A change in the demand for Pork can be caused by a. A change in the price for beef b) A change in the price for pork c. A change in the cost of producing pork 3. An increase in quantity supplied...
3. Answer the following questions involving the determinants of both demand and supply as explained in...
3. Answer the following questions involving the determinants of both demand and supply as explained in chapter three: L Assume the demand for product X increases. This might be caused by A a change in consumer tastes that is unfavorable to X. B. a decline in the price of Z, provided that X and Z are substitute goods C. a decline in income, provided that X is an inferior good. D. an increase in the price of Y, provided that...
7. Suppose an increase in the world price of corn is sustained throughout a long time period. The supply of corn over time will likely, a. become more elastic because consumers have more choices over longer time horizons. b. become more elastic because it takes corn a relatively long amount of time to mature from planting to harvest. c. become less elastic (more inelastic) because consumers have fewer choices over longer time horizons. d. become less elastic (more inelastic) because...
Suppose there is a decrease in the price of corn. If corn is an input into the production of ethanol, we would expect the supply curve for ethanol to shift rightward. shift leftward. become flatter. remain unchanged.
What happens to the market for corn if there is a drought that affects corn growers? Select one: O a. A rightward shift in supply, a decrease in price, and an increase in quantity O b. A leftward shift in supply, an increase in price, and a decrease in quantity O c. A decrease in supply, an increase in demand, and an increase in price O d. A decrease in supply, a decrease in demand, and a decrease in price
What happens to the market for corn if there is a drought that affects corn growers? Select one: O a. A rightward shift in supply, a decrease in price, and an increase in quantity O b. A leftward shift in supply, an increase in price, and a decrease in quantity O c. A decrease in supply, an increase in demand, and an increase in price O d. A decrease in supply, a decrease in demand, and a decrease in price
7. If the supply elasticity of pork is 0.46, by how much will quantity supplied increase if price increases by three percent? Is the supply for pork elastic or inelastic? 8. If the income elasticity of demand for rice is -0.27, what effect will a four percent increase in income have on rice consumption? What can we infer about rice as a result of this elasticity calculation? 9. If cross-price elasticity for chicken with respect to the price of beef...
NI There is but one correct answer to each multiple choice question. If Demand decreases by a greater amount than Supply decreases, then Pricean a. Increases, decreases b Deceases, increases c. Decreases, decrease 1. d. Increases, increase 2. A change in the demand for Pork can be caused by a. A change in the price for beef b) A change in the price for pork c. A change in the cost of producing pork 3. An increase in quantity supplied...
3. Answer the following questions involving the determinants of both demand and supply as explained in chapter three: L Assume the demand for product X increases. This might be caused by A a change in consumer tastes that is unfavorable to X. B. a decline in the price of Z, provided that X and Z are substitute goods C. a decline in income, provided that X is an inferior good. D. an increase in the price of Y, provided that...
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