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3. How will a decrease in the productivity of technology affect the supply of the item being considered, assuming no increase in the availability of manufacturing materials?

3. How will a decrease in the productivity of technology affect the supply of the item being considered, assuming no increase in the availability of manufacturing materials?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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DEMAND and SUPPLY FUNDAMENTALS: Shifts in Demand or Supply questions: 

 

 

3. How will a decrease in the productivity of technology affect the supply of the item being considered, assuming no increase in the availability of manufacturing materials? 4. If the price of an input resource increases (and there are no cheaper substitutes for the resource) then producers of the item the resource is used to produce are likely to of the item produced the amount 5. A subsidy is paid to vaccine producers in order to the supply of vaccine.
Transcribed Image Text:3. How will a decrease in the productivity of technology affect the supply of the item being considered, assuming no increase in the availability of manufacturing materials? 4. If the price of an input resource increases (and there are no cheaper substitutes for the resource) then producers of the item the resource is used to produce are likely to of the item produced the amount 5. A subsidy is paid to vaccine producers in order to the supply of vaccine.
Variables typically included in a multivariate demand function (other than the price and quantity of the item the demand function represents) are consumer tastes and preferences, the number of buyers, spendable (disposable) income, prices of substitute goods, prices of complementary goods, advertising expenditures, weather, and expectations. Recalling that the price of the item being considered is placed on the vertical axis, and the quantity on the horizontal axis, the other variables are termed demand shifters. Please answer the following questions about the affect changes in other variables might have on the demand for the item. These changes will either cause demand to increase (shift right) or decrease (shift left). Use either word as applicable, for the short answer. 1. If the price of a substitute good decreases relative to the price of the item being considered for purchase, then demand for the item being considered for purchase will likely: 2. If the number of potential consumers for the good being considered decreases, then the demand for the good being considered will likely: 3. If advertising expenditures for the good being considered are increased, then demand for the good being considered will hopefully: 4. Lattes and biscotti are complementary goods. If the quantity demanded of Lattes increases, then the demand for biscotti is likely to: 5. Magnetic Random Access Memory (MRAM) is a new type of computer memory that has interesting characteristics. It can be priced competitively with other types, it is nonvolatile (thus does not need power to retain its memory), takes up no more space than the other types, has comparable read/write speeds, shows erase and rewrite capability of more than 10 to the 15th power cycles, requires little power to read what is stored in it, and has no moving parts. If its retail price is competitive with older forms of computer memory, then demand for the older forms can be expected to: Variables typically included in a multivariate supply function (other than the price and quantity of the item the supply function represents) are prices of other goods that use similar input resources for production, expectations, the number of suppliers, techniques of production, taxes and subsidies, and prices of input resources, weather. Please answer the following questions about the affect changes in other variables might have on the supply of the item. These changes will either cause supply to increase (shift right) or decrease (shift left). Use either word as applicable, for the short answer. 1. Suppose the market price of fuel oil increases (preparing for the winter demand), what will refiners do to the supply of gasoline (which uses the same input resources as fuel oil)? 2. A tariff is a form of trade restriction (that behaves much like a tax). Suppose the United States imposes a high tariff on imported broccoli. How might this change the supply of imported broccoli?
Transcribed Image Text:Variables typically included in a multivariate demand function (other than the price and quantity of the item the demand function represents) are consumer tastes and preferences, the number of buyers, spendable (disposable) income, prices of substitute goods, prices of complementary goods, advertising expenditures, weather, and expectations. Recalling that the price of the item being considered is placed on the vertical axis, and the quantity on the horizontal axis, the other variables are termed demand shifters. Please answer the following questions about the affect changes in other variables might have on the demand for the item. These changes will either cause demand to increase (shift right) or decrease (shift left). Use either word as applicable, for the short answer. 1. If the price of a substitute good decreases relative to the price of the item being considered for purchase, then demand for the item being considered for purchase will likely: 2. If the number of potential consumers for the good being considered decreases, then the demand for the good being considered will likely: 3. If advertising expenditures for the good being considered are increased, then demand for the good being considered will hopefully: 4. Lattes and biscotti are complementary goods. If the quantity demanded of Lattes increases, then the demand for biscotti is likely to: 5. Magnetic Random Access Memory (MRAM) is a new type of computer memory that has interesting characteristics. It can be priced competitively with other types, it is nonvolatile (thus does not need power to retain its memory), takes up no more space than the other types, has comparable read/write speeds, shows erase and rewrite capability of more than 10 to the 15th power cycles, requires little power to read what is stored in it, and has no moving parts. If its retail price is competitive with older forms of computer memory, then demand for the older forms can be expected to: Variables typically included in a multivariate supply function (other than the price and quantity of the item the supply function represents) are prices of other goods that use similar input resources for production, expectations, the number of suppliers, techniques of production, taxes and subsidies, and prices of input resources, weather. Please answer the following questions about the affect changes in other variables might have on the supply of the item. These changes will either cause supply to increase (shift right) or decrease (shift left). Use either word as applicable, for the short answer. 1. Suppose the market price of fuel oil increases (preparing for the winter demand), what will refiners do to the supply of gasoline (which uses the same input resources as fuel oil)? 2. A tariff is a form of trade restriction (that behaves much like a tax). Suppose the United States imposes a high tariff on imported broccoli. How might this change the supply of imported broccoli?
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