Allocative efficiency is achieved Group of answer choices a. at the point where the supply and demand curves intersect. b. at a quantity lower than the equilibrium market quantity. c. at a quantity higher than the equilibrium quantity. d. any of the above can be true.
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- An increase in consumer income will cause a decrease in the demand for an inferior good. A.True B.False1. Assume that resource X is necessary in the production of good Y. If the price of resource X increases, then A. the quantity supplied of Y will increase. B. the quantity supplied of Y will decrease. C. the quantity demanded of Y will increase. D. the quantity demanded of Y will decrease. 2. Assume that good Z is an inferior good for a consumer. If the consumer's income increases, then A. the supply of good Z will increase. B. the supply of good Z will decrease. C. the demand of good Z will increase. D. the demand of good Z will decrease.When a market is in equilibrium, which of the following is not correct Select one: a. the price determines which buyers and sellers participate in the market. b. those buyers who value the good more than the price choose to buy the good. c. those sellers whose costs are less than the price choose to produce and sell the good. d. the marginal cost of producing the last unit of the good is equal to consumers' marginal benefit from consuming the last unit e. the opportunity cost of producing the last unit of the good is equal to the absolute advantage of producing it.
- Assume that corn and soybeans are alternatives that could be grown by most farmers. An increase in the price of corn will a.decrease the supply of corn. b.decrease the supply of soybeans. c.increase the supply of corn. d.have no effect on the supplies of corn and soybeans. e.increase the supply of soybeans.If price will change, holding other factors constant, the following will happen in the market for a consumerSingle choice. a. There will be a change in quantity demanded. b. There will be a change in quantity supplied. c. There will be a change in demand. d. There will be a change in supply.Give typing answer with explanation and conclusion Explain carefully why, in a competitive market, a quantity less than the equilibrium quantity is inefficient.
- What will happen in the market for personal computers if. a. Consumers experience a rise in income. b. A subsidy is placed on the production of personal computers. c. Both (a) and (b) happen simultaneously. Please provide explanation with a graphWhy is equilibrium the best guideline for pricing a product? A. It is the best way to set the price without knowing the market demand. B. It is the only way to know for certain that you will not end up with a surplus of product. C. It is a number-based agreement between customer and producer to set price versus demand.The total area under the demand curve of a good, measures- (A) Marginal utility (B) Total utility (C) Consumer's surplus (D) Producer's surplus
- When consumers face rising gasoline prices, they typically A. reduce their quantity demanded more in the short run than in the long run.B. reduce their quantity demanded more in the long run than in the short run.C. do not reduce their quantity demanded in the short run or the long run.D. increase their quantity demanded in the short run but reduce their quantity demanded in the long run.E. None of the above .When a market produces more or less than the optimal amount of a particular good, economists say there is: O Market failure An in-kind transfer payment O A value marginal product O Cross-inefficiencyGive typing answer with explanation and conclusion Suppose the cost of petrol is Rs. 100 per litre. There are two consumers who wish to purchase petrol for their cars: A and B. Consumer A goes to the petrol pump and asks for 10 litres of petrol. Consumer B goes to the petrol pump and asks for petrol worth Rs. 1000. (i) Find the equilibrium quantity demanded by each consumer. (ii) Draw the demand curves for each consumer. Are the two consumers identical? What is the price elasticity of demand for each consumer?
