The above reflects the short-run supply and demand for jelly... which is a normal good. Which graph best captures the following:
a) The government taxes the production of jelly
b) Government begins to subsidize the production of peanut butter (peanut butter and jelly sandwiches are very popular)
Graph 7 |
None of the above. |
Graph 8 |
Graph 5 |
Graph 6 The above reflects the short-run supply and demand for jelly... which is a normal good. Which graph best captures the following: a) The price of peanut butter rises (peanut butter and jelly sandwiches are VERY popular) b) Government begins to subsidize the production of jelly
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5. Graph 5
Subsidy on the production of good increases its supply. So, supply curve shifts rightwards. When government levied tax then price of jelly increases which reduces demand of commodity. As a result, demand curve shifts leftwards.
6. Graph 5
Sandwich and butter are complementary goods. Increase in price of butter decreases demand of Jelly sandwich which shifts demand curve leftwards.
7. a fall in the pencil supply curve and therefore an increase in price and a fall in quantity demanded.
Increase in wage increases cost of production of firms so supply of commodity decreases and price of commodity increases. Increase in the price causes decrease in the quantity demanded.
8. quantity will rise but the change in price cannnot be determined.
Increase in demand and supply increases equilibrium but change in price is ambiguous because it depends upon the magnitude of shift of demand and supply curve.
The above reflects the short-run supply and demand for jelly... which is a normal good. Which...
refer to the above graph. which of the four graphs represents the market for peanut butter after an increase in the price of jelly (a complementary good for peanut butter)? Price s Price VO Quantity 0 Q. Qe Quantity S' Price Os Quantity O Quantity Refer to the above graph. Which of the four graphs represents the market for peanut butter after an increase in the price of jelly (a complementary good for peanut butter)?
37. If the demand for baseball cards rises and the supply curve does not shift, then the price a. will rise and quantity will fall b. and quantity will rise c. will fall and quantity will rise d. and quantity will fall e. will rise, but quantity may rise or fall If the supply of coffee falls due to bad weather conditions in coffee-exporting countries, then the a. 38. price and quantity will rise b. price and quantity will fall...
QUESTION 3 (CHAPTER 4 - SUPPLY AND DEMAND) a. What is the law of demand? What factors are taken as constant when plotting a demand curve? b. What happens to a demand curve if the income of the consumers increases? c. What happens to a demand curve for a product if the price of a substitute product increases? (Hint: Margarine and butter are substitute good. What would happen to the demand curve for margarine if the price of butter increases?)...
Question 6 (10 points) Suppose that the demand decreased for 4K TVs and, at the same time, the supply of 4K TVs increased. What would happen in the market of 4K TVs? Equilibrium price would decrease, but the impact on the equilibrium quantity would be ambiguous Equilibrium price would increase, but the impact on the equilibrium quantity would be ambiguous Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous Equilibrium quantity would increase, but the impact...
Question 1 Other things remain unchanged, the market demand curve for a particular expected to shift leftwards when the price of that product declines. . True False Question 2 Other things remain equal, which of the following factors causes the market supply curve of Blue-ray players to shift leftwards? The costs of producing a single Blue-ray player increases. The number of firms selling Blue-ray players increases. The sellers are expecting the price of Blue-ray players to decline in the soon future. Non of the above factors causes the...
1.Suppose that good ABC is a neutral good for Leah. If Leah's income rises, then the result will be that Leah's demand curve for good ABC will a.shift rightward. b.shift leftward. c.not shift at all. d.shift rightward immediately and then shift leftward. ( I chose option A) 2. Which of the following illustrates the law of supply? a.Company ABC increases the quantity supplied of its product as the price of that product rises. b.Company ABC decreases the quantity supplied of...
QUESTION 1 Suppose the short-run elasticity of demand for gasoline in the US retail market is -0.5, and the long-run elasticity of demand in the same market is -0.8. What is the impact of an increase in the US federal gasoline tax? A. Increase tax revenue in the short run and decrease tax revenue in the long run B. Decrease tax revenue in both short run and long run C. Increase tax revenue in both short run and long run...
1. Which of the following statements about the labor market is (are) correct? (x) The supply curve reflects job seekers and the demand curve reflects the jobs that are available. (y) Workers determine the demand for labor, and firms determine the supply of labor. (z) The minimum wage is an example of a price floor because the government has mandated a minimum price of labor. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only...
Other things remain unchanged, the market demand curve for a particular product is expected to shift leftwards when the price of that product declines.Question 1 options:TrueFalseQuestion 2Other things remain equal, which of the following factors causes the market supply curve of Blue-ray players to shift leftwards?Question 2 options:The costs of producing a single Blue-ray player increases.The number of firms selling Blue-ray players increases.The sellers are expecting the price of Blue-ray players to decline in the soon future.Non of the above...
2. Consider again the avocado example, where demand and supply functions are Qd 160 40p Qs-50+15p Suppose a severe drought hit California, and the state government decided to subsidize farmers 40 cents for each pound of avocados produced. (Unit: Q is million pounds of avocados, and p is dollars). (1) With government subsidy, write down the functions of demand and supply. (2) What is the new equilibrium price and quantity of avocados? (Rounding to two decimal places) (3) Plot the...