Assume that a scientific study came out confirming that consuming one teaspoon of Nutella a day decreases the rate of heart diseases. As a result, Nutella becomes more popular to consumers. In addition, news reports state that there has been a technological improvement in the production o hazelnuts leading to a decrease in the price of hazelnuts. What is likely to happen in the market of Nutella?
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- When there is an decrease in the demand for a good, this can be expected to cause in the equilibrium price of the good and in the equilibrium quantity of the good bought and sold, all else the same. O a decrease : an increase an increase : an increase O an increase : a decrease O a decrease : a decrease « Previous Next ASUS f5 16 17 & 5 6of Microeconomics Spring20 fall20 Suppose that the quantity of pizza demanded decreased by 15 percent after an increase in price of 10 percent. What is the price elasticity of demand for pizza? Select one: O a. -0.67 O b. 1.50 O C. -1.50 O d. 0.67 Next pageIf a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded of that product, will another 10 decrease in the price cause another 3 increase (no more and no less) in quantity demanded?
- Title Assume Brian"s income elasticity of demand for milk is 1, and he spends 1% of his income on milk. If his price elasticity of demand for milk is –0.03, what is his substitution price elasticity? Description Assume Brian"s income elasticity of demand for milk is 1, and he spends 1% of his income on milk. If his price elasticity of demand for milk is –0.03, what is his substitution price elasticity?6. When a good is normal:(a) An increase in income raises consumption at each price, so the demand curve shifts tothe left(b) An increase in income raises consumption at each price, so the demand curve shifts tothe right(c) A decrease in income lowers consumption at each price, so the demand curve shifts tothe right(d) An increase in income lowers consumption at each price, so the demand curve shiftsto the left.Refer to the accompanying figures. If Mallory and Rick are the only two consumers in this market, then the market demand for soda will be 90 cans per month when the price of a can of soda is Mallory's Demand for Soda Price ($/can) 1.501 1.25 1.00 0.75 0.50 0.25 0 0 10 20 30 40 50 60 70 Quantity (cans of soda/month) Select one: O a. $1.50 O b. $0.50 O c. $1.25 O d. $0.75 Price ($/can) 1.50 1.25 1.00 0.75 0.50 0.25 0 0 Rick's Demand for Soda 10 20 30 40 50 60 70 Quantity (cans of soda/month)
- 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 quanttiyIf butter and margarine are substitutes, an increase in the price of butter causes: Select one: O a. quantity demanded of margarine to fall and the demand curve for butter to shift toward the origin O b. quantity demanded of butter remains constant, but the demand for margarine decreases O c. the demand curve for both butter and margarine shift O d. decrease in quantity demanded for butter and an outward shift of the demand curve for margarine(Figure: The Demand for Online Movies) Use Figure: The Demand for Online Movies. If the price of online movies decreases from $6 to $4, total revenue which means that demand is Price $10 8 6 4 30 60 90 Quantity Ochanges from $60 to $90; elastic o remains constant; unit-elastic changes from $240 to $360; elastic Ochanges from $40 to $50; inelastic
- QUESTION 8 The demand for bicycles decreases by 10 as a result of an increase in the price of bicycles. The substitution effect alone would predict a decrease of 12 units. We can conclude that O a. Bicycles are a Giffen good O b. Bicycles are inferior goods OG Bicycles have a positive elasticity of demand with respect to income O d. Substitution and income effects have the same magnitude O e. None of the proposed answers is correctQuestion 28 Oil is a main component in the manufacture of plastic bags. If the price of oil were to increase, the price of plastics bags would and the quantity would O increase; stay the same O increase; increase O increase; decrease decrease; decrease O decrease; increase↑ Use the information in the table below to compute Susan's income elasticity of demand for business magazines. Business Magazines Demanded per Month OA 0.113 OB. 1.216 OC. 7.250 OD. 0.138 COE. 8813 Month 1 2 6 Income per Month $3525 $3725