1. Explain with the help of a neat labelled diagram, what happens to equilibrium price andquantity in the following situations:a. A big increase in demand is followed by a smaller increase in supply.b. A decrease in demand is followed by an equal decrease in supply.2. When the price of "X" changes from OMR 10 to OMR 15, the demand for "Y changesfrom 15525 kgs to 18725 kgs. Calculate cross elasticity of demand for these goods. Whatkind of products are “X" and "Y"?marks)(23. Assume that in the short run a firm is producing 200 units of output, has average totalcosts of OMR350, and average variable costs of OMR200. Calculate Fixed costs. Definefixed costs. (2 marks) 4. Ahmed has an income of OMR150 per month that has to be spent on two goods: Shoes and Jeans. From the following table, estimate the bundle that maximizesAhmed's well-being.Quantity (units)Shoes (OMR20/pair)Marginal Benefits(OMR)Jeans (OMR10/pair)Marginal Benefits(OMR)14035233333282242315520106157.5(4 marks)5. The total cost of a firm is OMR 200, the average variable cost is OMR 16, and theaverage fixed cost is OMR 24. How may units of the output does the firm produce?mark)(16. When the price of milk increases from OMR 1.500 to OMR 3.500, its quantity demandedfalls from 3500 litres to 2000 litres. Find the elasticity of demand . comment on thedegree of elasticity.(2 marks)7. A firm produces 10 units of output, its total costs are OMR 2250 and average fixed costsare OMR 125, then find total variable costs. (2 marks)

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Explain with the help of a neat labelled diagram, what happens to equilibrium price and quantity in the following situations: a. A big increase in demand is followed by a smaller increase in supply. b. A decrease in demand is followed by an equal decrease in supply.

Explain with the help of a neat labelled diagram, what happens to equilibrium price and quantity in the following situations: a. A big increase in demand is followed by a smaller increase in supply. b. A decrease in demand is followed by an equal decrease in supply.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following would result from a decrease in supply? A. a decrease in the equilibrium price and a decrease in the equilibrium guantity B. an increase in the equilibrium price and an increase in the equilibrium quantity C. a decrease in the equilibrium price and an increase in the equilibrium quantity D. an increase in the equilibrium price and a decrease in the equilibrium quantity Which of the following would cause a rightward shift of the demand curve and a leftward shift of the supply curve? A. a decrease in the price of a substitute and a decrease in the price of a complement in production B. an expectation of higher income and a decrease in productivity C. a positive change in consumer tastes and a decrease in the cost of an input D. a decrease in the price of a complement and an expectation by firms of a lower price E. an expectation by consumers of a lower price and a decrease in the number of firms in an industry
Other things remaining the same, a left shift in the supply curve will lead to: Select one: A. a decrease in the equilibrium price and an increase in the equilibrium quantity. B. an increase in the equilibrium price and the equilibrium quantity. C. a decrease in the equilibrium price and the equilibrium quantity. D. an increase in the equilibrium price and a decrease in the equilibrium quantity.
For each of the following scenarios, determine if there is an increase or a decrease in supply for the good in italics. a. The price of silver increases. b. Growers of tomatoes experience an unusually good growing season. c. New medical evidence reports that consumption of organic products reduces the incidence of cancer. d. The wages of low-skilled workers, a resources used to help produce, clothing, increase. e. The price of movie tickets, a substitute for Netflix video rentals, goes up.
A decrease in demand will cause a decrease in the equilibrium quantity and the equilibrium price. a. True b. False
d. How will this change the equilibrium price and quantity of coffee? Explain your reasoning. Scenario 2: The Ministry of health publishes a study finding that coffee drinking reduces the probability of getting cancer. a. How do you imagine this will affect the market for coffee? Why? b. Which determinant of demand or supply is being affected? Explain. c. Show graphically the changes in demand or supply. d. Will this change the equilibrium price and quantity of coffee? Explain your reasoning.
I just need the last bottom three answered please.
For each of the following articles below, analyze the impact of a change in demand or a change in supply or both (or it may not necessarily illustrate a change) on price equilibrium price, market price) for the good under consideration and draw the appropriate graph for each article. Use D., S.. P., and O. to symbolize initial demand, supply, equilibrium price and quantity respectively. Use D,, S., P., and Q, to represent the new demand, supply, equilibrium price and quantity respectively Slaughter rates dropped in 2019 because of low farm gate prices and weak pork demand, which contributed to a decline in 2019 swine meat production (plg333.com. March 26, 2020)
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Which one of the following statements is incorrect?A. An increase in supply is illustrated by a rightward shift of the supply curve.B. An increase in the quantity supplied is illustrated by an upward movement along the supply curve.C. There is a positive relationship between the price of a product and the quantity supplied.D. A decrease in supply is illustrated by a downward movement along the supply curve.E. A supply curve illustrates the quantities supplied at different prices, ceteris paribus
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Which of the following will definitely result in a decrease in the equilibrium price of a good? Select one: a. A decrease in demand together with an increase in supply. b. An increase in both demand and supply. c. A decrease in supply only. d. A decrease in both demand and supply. e. An increase in demand together with a decrease in supply.