Question

8. Consider the following PPF of Kenzi. Kenzi Pizza 30 20 Stromboli Suppose Kenzi chooses to produce 18 pizzas, how many strombolis can she produce if Kenzi uses her resources efficiently? 9. Refer to the following table, is there a surplus or shortage if the market price = $6? How much is it? Quantity Quantity Price Demanded Supplied $10.00 10 100 $8.00 20 80 $6.00 30 60 S4.00 40 40 $2.00 50 20 S0.00 60 0 10. The price of raw materials for producing good A increases. What happens to the equilibrium price of good A? 11. The economy is experiencing a recession. Suppose ramen noodles is an inferior good. What happens to the equilibrium quantity of ramen noodles?

Answer 1

Answel. o the Suppose Kenzi chooses to produce 18 pizzas amount of strombolis Kerzi cas produce if she ases her resources efficiently In the ppf, Kenzi cas produce 30 pizzas ar 20 strombole 1 pizza a 2 stromboli 3. Kenzi chooses to produce id pizzas, she cas produce x 18 = 12 strombolis èf Kenzi uses her resources 2 efficiently

9. At a market price = $6, the quantity demanded is 30 and quantity supplied is 60 Thus there is a suplus of 30 in the market А 10 there increases When the price of raw materials for producing good the cost of producing good A increases. Thus, is a shift / decrease in the supply curve. Thus, the equilibrium price of good A increases. 11. Ramen is noodles is as inferior good. The economy is expevjercing a secession. Thus, the income will decrease. In case of inferior good, a decrease in the income of the individed will calls the demand for ramen noodles,