answer: 1: a competitive market is in equilibrium when its marginal revenue (MR) is equal to the marginal cost (MC) . the equilibrium point is the intersection point of MR and MC curve and MC curve must cut MR curve from below. This equilibrium decides the price and quantity of the firm in the market
Answer: 2: yes equilibrium price and market price are the same thing or always equal. The price where quantity demanded is equal to the quantity supplied in the market is the equilibrium price or market price.
Answer: 3: the law of decreasing returns to scale states that an increase in the additional input in production the output decreases. With the increase in input the returns from it starts decreasing it is the law of decreasing returns
Answer: 4: a fourth law of economics is the law of equal returns this law states that the additional input if a variable will give equal amount of output
When is a competitive market in equilibrium? Equilibrium price and market price are the same thing...
Question 40 An increase in the supply of gasoline, ceteris paribus, will cause equilibrium price: To rise and quantity to fall. To fall and quantity to rise. And quantity to rise. And quantity to fall Question 41 Assume two goods are substitutes. Ceteris paribus, a decrease in the price of one good will cause the equilibrium price of the other good to: Increase and the equilibrium quantity of the other good to increase Increase and the equilibrium quantity of the...
In a competitive (same as perfectly competitive) market, the equilibrium price is determined : at the intersection of the firm's demand curve and the market supply curve at the intersection of the market demand and supply curves at the intersection of the firm's demand and marginal cost curves so as to cover the costs of the potential firms so as to cover the costs of the firms currently in the industry
Exhibit 7. Suppose that in a recent market period, the following relationship existed between the price of tablet devices and the quantity supplied and quantity demanded. Price 5330 $340 $350 S360 Quantity Demanded 100 million 90 million 80 milliorn 70 million Quantity Supplied 40 million 60 million 80 million 100 million S370ich 29-Graph the supply and demand curves for tablet devices using the information in the table. What are the equilibrium price and 60 million 120 million quantity? 30- In...
Ceteris paribus, if demand and supply both increase at the same time, equilibrium price and equilibrium quantity_ a. increases; may rise, fall, or stay the same, depending on the size of the two shifts. decreases; may rise, fall, or stay the same, depending on the size of the two shifts. c. may rise, fall, or stay the same, depending on the size of the two shifts; increases may rise, fall, or stay the same, depending on the size of the...
From the list on your right select the letter that contains the word phrase, name, etc that best matches the word, phrase, name, ele listed on the A The Law of Supply B. Equilibrium C. An example of price floor The total amount of goods and services consumers are willing and able to purchase at a given price. D. Substitutes Other things remaining the same ar ather things being equal E. Demand Positive or direct relationship between price and quantity...
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1. What is the difference between Change in quantity demanded and Change in demand? 2. True or false? As the price of oranges rises, the demand for oranges falls, ceteris paribus. Explain your answer 3. With respect to each of the following changes, identify whether the demand curve will shit rightward or leftward: a An increase in income (The good under consideration is a normal good) b. A nse in the price of a substtute good C. A...
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...
Week 2 2 hours 50 questions 100 Points ime Remaining: Save Progress Last Saved: 4:50 PM UNone of the above 45) The current supply cúrve of widgets would shift to the right (an increase in supply)as a result of which of the following changes? (2pts) 3 an expeczátion that the price of widgets will be higher next mont a the elmidation of a subsidy for producers of the good. a decrease in the wages paid to the workers who make...
Each of the following examples gives a non price factor that could change demand or supply. Illustrate this change graphically and then note the effect on equilibrium price and equilibrium quantity. Also, indicate the reason for the change.1. What is the effect in the market for family home swimming pools as consumers' income increases? 2. What happens in the market for albums by a recording group when it falls from popularity? 3. What will happen in the market for surfboards if the...
Directions: For each question, show what happens to Equilibrium price (P) and quantity (Q) using supply-demand analysis. Clearly state your conclusion (e.g., "equilibrium price increases, while equilibrium quantity decreases" using the short-hand " ^P and vQ"). Be sure to complete and correctly label your graphs. Question 5: Part A: An important ingredient/input in the production of gasoline is petroleum. Suppose there is a technological innovation - let's call it hydraulic fracturing ("fracking") - in the production of petroleum. Ceteris paribus,...