A manufacturer of shirts sells the exact same shirt in two different colors: black and white.The cost of producing each shirt is the same. Black and white shirts are substitutes inproduction. If the selling price of the black shirt increases, the supply of white shirts will, and the supply curve of the white shirts will shiftO decrease, leftO decrease, rightincrease, rightincrease, left

Since black and white shirts are substitutes in production, if the increase in selling in black, the…

Answered: A manufacturer of shirts sells the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

Why is the supply curve upward sloping for a particular good? Higher prices of the good make the good less profitable O Higher prices of the good incentivize firms to produce more of the good Higher prices of the good increase wages Higher prices of the good increase the demand for the good
Consider a price change from $1.0 to $1.5 causes the quantity demanded changfrom 100 units to 75 units. Set up the table and answer the followings:
Consider apples and oranges, which we'll assume are substitutes. If the price of oranges falls, we'll see in the market for apples and in the market for oranges. None of the listed options is correct. O a decrease in quantity demanded; an increase in demand a decrease in demand; an increase in quantity demanded a decrease in quantity demanded; a decrease in demand an increase in demand; a decrease in quantity demanded.
Price t y D1 D2 Quantity Prom tickets get very expensive, this would be indicated on the graph above by OA move from point y to point x, as a change in quantity demanded OA shift from D2 to D1, as a change in quantity demand OA shift from D2 to D1, as a change in demand O A move from point y to point x, as a change in demand
Assume that coffee and tea are substitutes. John and Pamela are vendors at MANCOSA campus. John sells tea and Pamela coffee. They usually sell these drinks at R15 per cup, However, it is a cold Monday morning and Pamela decides to decrease the price of coffee to R12 a cup. The resultant effect would be movement along the demand curve for coffee takes place since it is a change in the price of coffee. Select one: O True O False
Corn can be used to make tortilas or to make ethanol fuel for trucks and automobiles. Which of the following statements is incorect? O Increased production of com is likely to result in a higher price for both ethanal and tortillas. An increase in the price of ethanol is likely to resut in increased production of com Onereased demand for tortiles is likely to resut ina higher price for ethanol An increse in the price of ethanal liety to esut in an inose in the price of tortilas
When income rises by 10%, the demand for Good A falls by 3%. From the above, we know Good A is O a complement a normal good O an inferior good O a substitute
QUESTION 11 The number of seats available in an arena is fixed at 20,000. The equilibrium price for a ticket to a basketball game at the arena is $75. The equilibrium price for a ticket to the circus at the arena is $25. Which of the following is true? O The demand for each basketball game must be more than the demand for each circus performance. O Basketball games must be more expensive to produce than a circus performance. O The supply of circus performances must be less elastic than the supply of basketball games. O The demand for each circus performance must be greater than the demand for each basketball game.
A change in price of a good or service typically causes O a new equilibrium price O a change along the supply curve the supply curve to shift O a decreased demand for that specific good or service.
A decrease in the supply of a product most likely would be caused by O An increase in business taxes O A decrease in resource costs for production O A decrease in the price of a complementary good O None of the above
If two goods are substitutes, a decline in the price of one will cause an increase in the demand for the other. A.True B.False

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