Are predictions using the supply-and-demand model likely to be reliable in each of the following markets? Why or why not? Predictions using the supply-and-demand model for the apple market are likely A. not reliable because consumers have full information about apple prices. B. reliable because apple farmers sell diffrentiated products. c. reliable because the market for apples has many farmers and consumers. OD. not reliable because apples have no transaction costs. OE. not reliable because the cost of trading apples is low. Predictions using the supply-and-demand model for convenience stores are likely A. not reliable because it is diffcult to find convenience stores. B. not reliable because each convenience store comprises a large share of the market. c. reliable because convenience stores have only a few competitors and consumers. D. reliable because convenience stores sell identical products. E. not reliable because consumers have limited information about convenience store prices. Predictions using the supply-and-demand model for electronic games are likely

Are predictions using the supply-and-demand model likely to be reliable in each of the following markets? Why or why not? Predictions using the supply-and-demand model for the apple market are likely A. not reliable because consumers have full information about apple prices. B. reliable because apple farmers sell diffrentiated products. c. reliable because the market for apples has many farmers and consumers. OD. not reliable because apples have no transaction costs. OE. not reliable because the cost of trading apples is low. Predictions using the supply-and-demand model for convenience stores are likely A. not reliable because it is diffcult to find convenience stores. B. not reliable because each convenience store comprises a large share of the market. c. reliable because convenience stores have only a few competitors and consumers. D. reliable because convenience stores sell identical products. E. not reliable because consumers have limited information about convenience store prices. Predictions using the supply-and-demand model for electronic games are likely

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter2: Using Economics To Study Health Issues

Section: Chapter Questions

Problem 1QAP

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We can have control over: O a. consequences O b. alternative O c. demand d. state of nature O e. supply
2. TheMarketinquestionisthechickenmarket.If the price of beef rises, what do you expect to happen to the demand for chicken? A). Will the demand change (shift of the curve) of will the quantity demanded change (movement along the line)? Answer:______________________________________ B). If demand changes, will the curve shift to the right (increase in demand) or shift to the left (decrease in demand)? Please draw this on the graph above. C). If the demand changes, what is the factor or determinant affecting the change? Please see Supply/Demand Cheat Sheet...Hint: income (normal or inferior good, complement or substitute good), prices of related goods, tastes, expectations, population or numbers of buyers? Answer:_____________________________________
If StarCoffee and AnotherCup are the only cafes in a village, what is the market supply of lattes in the village? The market supply of lattes is the ________.A. Average quantity of lattes that StarCoffee and AnotherCup are willing to sell at each price.B. Total quantity supplied by StarCoffee and AnotherCup at each price of a latteC. The sum of the prices at which starcoffe and anothercup are willing to offer each quantity supliedD. The highest price at which starcoffee and anothtercup are willing to sell the same quantity of lattes
The pandemic offered automobile dealerships an unexpected boost. Factory shutdowns tightened inventory, causing prices to rise and profitability to surge. Which of the following explains what happened when the pandemic decreased dealerships' inventory and increased automobile prices? O The pandemic decreased the supply of automobiles, which made the demand for automobiles more price elastic. This meant that when prices increased, the revenue from sales of automo-biles increased O Factory shutdowns eliminated dealerships' total short-run costs. Therefore, each dollar of reve-nue from automobile sales added a dollar to the dealerships' profits. O Production shutdowns caused the demand curve for automobiles to shift to the left. As a result, automobile prices and revenue both increased. O The pandemic caused the supply of automobiles to decrease, which increased automobile pric-es. The increase in revenue from automobile sales exceeded the increase in dealerships' costs of production
Producers are willing to increase production athigher prices to increase profit.Select one:O a. FalseO b. True
Directions: Read each scenario. Illustrate the change in demand or change in quantity demanded for the good mentioned in each scenario on the graphs provided. Write if it was a change in demand or a change in quantity demanded. List the determinant. 1. TheMarketinquestionisthebagelmarket.If the price of cream cheese rises, what do you expect to happen to the demand for bagels? A). Will the demand change (shift of the curve) of will the quantity demanded change (movement along the line)? Answer:______________________________________ B). If demand changes, will the curve shift to the right (increase in demand) or shift to the left (decrease in demand)? Please draw this on the graph above. C). If the demand changes, what is the factor or determinant affecting the change? Please see Supply/Demand Cheat Sheet...Hint: income (normal or inferior good, complement or substitute good), prices of related goods, tastes, expectations, population or numbers of buyers?…
According to the table, using the midpoint method, what is the elasticity of supply from point A to point B? Price Quantity $2.25 125 $2.45 145 Select one: a. unit elastic and equal to 1 b. elastic and equal to 2.1 c. inelastic and equal to 0.57. O d. elastic and equal to 1.74 A,
. The following relations describe monthly demand and supply for a computer support service catering to small businesses.Q D = 3,000 - 10PQ S = -1,000 + 10Pwhere Q is the number of businesses that need services and P is the monthly fee, in dollars.a. At what average monthly fee would demand equal zero?b. At what average monthly fee would supply equal zero?c. Plot the supply and demand curves.d. What is the equilibrium price/output level?e. Suppose demand increases and leads to a new demand curve:Q D = 3,500 - 10PWhat is the effect on supply? What are the new equilibrium P and Q?f. Suppose new suppliers enter the market due to the increase in demand so the new supplycurve is Q = –500 + 10 P. What are the new equilibrium price and equilibrium quantity?g. Show these changes on the graph.
Suppose that California wildfires destroy one-third of the grape crop in the state. What would be the expected effect on the market for raisins? O increase in equilibrium price, increase in equilibrium quantity O decrease in equilibrium price, increase in equilibrium quantity decrease in equilibrium price, decrease in equilibrium quantity no change in the market for raisins increase in equilibrium price, decrease in equilibrium quanttiy
A U.S. business sells milk to consumers in France. Which situation would most likely cause demand for milk to rise in France? O A. The French population declines steadily due to years of economic problems. O B. Cheese and other products made from milk become less popular in France. O C. A popular French nutrition author claims that milk is bad for people's health. D. French consumers expect the price of milk to increase in the future.
The quantity supplied of a good or service is the amount that sellers are willing and able to purchse at certain price and at a certain time. Select one: O a. False O b. True
Iran has threatened to close the Straits ot Hormuz, a narrow passageway that connects the Persian Gulf and the Indian Ocean. As a result, gas prices have increased. What is the effect on grocery prices in general? What Will be the fifth on demand and supply of gas in Texas? 1. what has happened to his concern you as an economist?