explain why such a supply curve represents the very short run, and provide a hypothetical or...
explain why such a supply curve represents the very short run, and provide a hypothetical or real world example. How are price and quantity determined in such a market (assuming typical downward sloping demand curves). Include a supply-demand diagram to supplement your explanation.
Homework Answers
Add Answer to:
explain why such a supply curve represents the very short run,
and provide a hypothetical or...
33. If the short-run supply curve for fresh fruit is perfectly inelastic and the demand curve...
33. If the short-run supply curve for fresh fruit is perfectly inelastic and the demand curve is a downward- sloping straight line, what is the effect of a per unit tax on equilibrium price and quantity, and what is the incidence on consumers? Why? Illustrate your answer with diagram.(9')
The classical dichotomy and monetary neutrality are represented graphically by an upward-sloping short-run aggregate-curve. a vertical long-run aggregate-supply...
The classical dichotomy and monetary neutrality are represented graphically by an upward-sloping short-run aggregate-curve. a vertical long-run aggregate-supply curve. an upward-sloping long-run aggregate-supply curve. a downward-sloping aggregate-demand curve.
Consider a market free of government intervention and having a downward sloping demand curve and an...
Consider a market free of government intervention and having a downward sloping demand curve and an upward sloping supply curve intersecting at some price P0. Write a short explanation of why any price higher than P0cannot be a free market equilibrium. Write a shortexplanation of why any price lower than P0cannot be a free market equilibrium. Now decrease supply a great deal and decrease demand until the curves no longer intersect (that is, the curves meet the vertical axis without...
Describe the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve. A. the...
Describe the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve. A. the SRAS curve is horizontal and the LRAS curve is upward sloping B. the SRAS curve is horizontal and the LRAS curve is vertical C. the SRAS curve is vertical and the LRAS curve is horizontal D. the SRAS curve is vertical and the LRAS curve is upward sloping Why is the short-run aggregate supply curve horizontal? A. because output is fixed in the short...
Why is the short-run Phillips curve downward sloping? Explain the reasons behind the downward slope of...
Why is the short-run Phillips curve downward sloping? Explain the reasons behind the downward slope of the short-run Phillips curve.
6. Why the aggregate supply curve slopes upward in the short run In the short run,...
6. Why the aggregate supply curve slopes upward in the short run In the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. Several theories explain how this might happen. For example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. Consider a soybean farmer who expects a...
The diagram below shows the demand for money and the supply of money. A) Explain why the Money Demand Curve is a downw...
The diagram below shows the demand for money and the supply of
money.
A) Explain why the Money Demand
Curve is a downward sloping curve.
B) Suppose the interest rate is
at iA. Explain how firms and households attempt to
satisfy their excess demand for money. What is the effect of their
actions?
C) Suppose the interest rate is
at iB. Explain how firms and households attempt to
dispose of their excess supply of money. What is the effect of...
Labour Markets: Consider a hypothetical market for low-skilled labour. For simplicity, assume the short-run supply of...
Labour Markets: Consider a hypothetical market for low-skilled labour. For simplicity, assume the short-run supply of workers is given by the equation Qs = 100 + 10w, where Qs is the quantity supplied and w is the wage. The demand curve is given by Qd = 250 − 5w, whereQd is the quantity demanded. Provide some intuition as to why the elasticities are inelastic. Supposethegovernmentweretoimplementaminimumwage(apricefloor)thatincreased the wage by 50%. Using your calculated elasticities, determine the response of workers and firms....
In the short run, there are many U-shaped cost curves. Which of the following explains why...
In the short run, there are many U-shaped cost curves. Which of the following explains why the ATC is that way in the short run? It is U-shaped because the minimum efficient scale is achieved. It is U-shaped because the AFC declines as more goods are produced. It is U-shaped because of economies and diseconomies of scale. It is not U-shaped. It is U-shaped because of increasing and decreasing returns. If a firm is experiencing economies of scale, what is...
17- Both the long run and short run aggregate supply curve will shift when an event...
17- Both the long run and short run aggregate supply curve will shift when an event occurs which is expected to last only a short period of time. they are both upward sloping. a war occurs in the Middle East. the endowments of the factors of production changes 19- Cost-push inflation occurs when the aggregate supply curve shifts to the right, while aggregate demand remains stable. when the aggregate demand curve shifts to the left, while aggregate supply remains stable....
33. If the short-run supply curve for fresh fruit is perfectly inelastic and the demand curve is a downward- sloping straight line, what is the effect of a per unit tax on equilibrium price and quantity, and what is the incidence on consumers? Why? Illustrate your answer with diagram.(9')
The diagram below shows the demand for money and the supply of
money.
A) Explain why the Money Demand
Curve is a downward sloping curve.
B) Suppose the interest rate is
at iA. Explain how firms and households attempt to
satisfy their excess demand for money. What is the effect of their
actions?
C) Suppose the interest rate is
at iB. Explain how firms and households attempt to
dispose of their excess supply of money. What is the effect of...
In the short run, there are many U-shaped cost curves. Which of the following explains why the ATC is that way in the short run? It is U-shaped because the minimum efficient scale is achieved. It is U-shaped because the AFC declines as more goods are produced. It is U-shaped because of economies and diseconomies of scale. It is not U-shaped. It is U-shaped because of increasing and decreasing returns. If a firm is experiencing economies of scale, what is...
Most questions answered within 3 hours.
-
A manufacturer of banana chips would like to know whether its
bag filling machine works correctly...
asked 1 minute ago -
Complete the chapter case, "Turnover Analysis".
Chapter Case
Turnover Analysis
You recently completed your company’s new...
asked 3 minutes ago -
What is the pH of solutions having the following H3O+
concentrations? Identify each as acidic, basic,...
asked 16 minutes ago -
How does over-voltage of the diode usually occur?
asked 24 minutes ago -
If you step on a dirty nail, your doctor will recommend you
update your Tetanus vaccination....
asked 24 minutes ago -
Suppose that decreases in the price of milk lead to decrease s
in the retail prices...
asked 26 minutes ago -
To get a sample of a certain size, scores are taken one-by-one
from the observed data...
asked 32 minutes ago -
A check-processing center uses exponential smoothing to forecast
the number of incoming checks each month. The...
asked 42 minutes ago -
Teams with high levels of ______ and ______ deal with task
conflict better than those without...
asked 53 minutes ago -
Create a C++ project called lab3b and add the following source
code init_struct.cpp to the project....
asked 1 hour ago -
12.
A budget that can be easily adjusted to show budgeted revenues,
costs, and cash flows...
asked 1 hour ago -
________ unemployment changes slowly and depends on
________.
Select one:
a. Frictional; the rate at which...
asked 1 hour ago