If the price of a substitute increases, which of the following is most likely to happen in the market for the product under consideration in the short run? Supply will increase. Firms will leave the market. Firms will devote more variable inputs in the production of this good. Firms will devote less variable inputs in the production of this good.

Q: Quantity supplied exceeds the quantity demanded. Everyone with the desire and the income to buy milk…

A: Demand has an inverse relationship with quantity demanded.

Q: Suppose the estimated supply function for avocados is given by QS = 48 + 15p – 10pf , where pf  is…

A: In economics, an equilibrium point refers to a state of balance or stability in a market or economic…

Q: Movement along the demand and supply curves is referred to as "a change in demand and supply," while…

A: Demand refers the total amount of goods and services that are willing and able to buy at the…

Q: If the price of a good is initially below the equilibrium level         excess demand exists.…

A: Equilibrium price: At this supply of goods matches the demand.

Q: After widespread press reports about the dangers of contracting "mad cow disease" by consuming beef…

A: There is a report which wars about the danger of contracting "mad cow disease" by consuming beef…

Q: If a product is in surplus supply, its price:         is below the equilibrium level.        is…

A: Introduction- If a good or a product is present in more portion than it is utilised, then the good…

Q: Good X and good Y are substitute in production. The demand for good X decreases, which lowers the…

A: Two goods are called ‘substitutes’ to each other, if they can satisfy the same need of the consumers…

Q: A supply curve which is partaken to the horizontal axis suggests that

A: The markets are the place where the buyers, or the consumers interact, and meet with the sellers.…

Q: Assume that trucks are an input into the production of new homes. In the market for new homes, what…

A: Here trucks are input in the production of new homes. When the cost of production decreases due to…

Q: The supply curve will shift to the right if there is: a change in consumer preferences for the good…

A: A supply curve is a graphical representation that describes the relationship between the cost of…

Q: A rightward shift of the demand curve in a market with an upward-sloping supply curve will lead to…

A: The equilibrium occurs where the demand and supply are equal. The price prevailing at equilibrium…

Q: In Jonesville, the market price and equilibrium quantity demanded of ice cream drops every year in…

A: The law of demand states that price and demand have an inverse relationship. If the price falls…

Q: Which of the following will definitely cause an increase in the equilibrium price? An increase in…

A: The price of equilibrium has been the sole cost that customers' expectations and sellers'…

Q: A decrease in supply and a decrease in demand will  increase price and affect the equilibrium…

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Q: The law of supply shows that: The law of supply shows that:  at higher prices producers are…

A: Supply is amount of a good that producers are willing to produce at different prices.

Q: For each of the following changes, determine whether there will be a change in quantity supplied or…

A: When there is a change in price of the good, then it brings movement along the demand or supply…

Q: In the market for personal computers, which of the following would cause a decrease in supply?…

A: Answer: (c) Businesses are required to pay a higher tax on the production of personal computers.

Q: For each of the following changes, determine whether there will be a change in quantity supplied or…

A: Quantity supplied changes only if the good's own price changes. Supply changes only if non-price…

Q: Which of the following would cause the supply curve to shift to the right? An increase in the price…

A: The law of states that as the price of the product rises then quantity falls and as the price of a…

Q: Consider the market for pizza in a large city. Assuming that pizza is a normal good. Identify what…

A: In the market for pizza, labor is considered as the input resource that is used to make pizza and…

Q: Consider the market for gas. Which of the following changes would most likely lead to a decrease in…

A: Supply refers to the availability of goods and services in the market. The factors such as price of…

Q: he market for paperback detective novels is perfectly competitive. Market Demand is given by…

A: Given market demand = Q = 220 – 3P Supply P =  4 + 2q

Q: The following statements contain common errors. Identify and explain each error using the…

A: Equilibrium in economics is the state of stability and balance. Any deviation from this level will…

Q: Which of the following will shift the supply curve for a commodity to the right? (i) An increase in…

A: Supply refers to the output that the sellers or producers are willing to sell in the market at…

Q: Which of the following would cause an increase in demand in the market for yoga pants? The price of…

A: The demand curve for a good shows the quantity demanded of that good at various price levels. When…

Q: Consider the market for Starbucks coffee. Suppose that the price of coffee beans (an input)…

A: Substitute goods are goods whose demand will increase when the price of the other good falls. For…

Q: A decrease in supply will cause an increase in demand. a decrease in demand. an increase in quantity…

A: Decrease in supply: Figure -1 shows the effect of decrease in supply as follows:

Q: Which of the following increases the market supply of roses? A) A decrease in energy costs B) An…

A: It refers to the quantity(Q) of services and items that producers are ready and able to offer for…

Q: In a graph of supply and demand, the intersection of the supply and demand curves for a good…

A: In a demand and supply graph, the demand curve is a downward sloping curve because of the inverse…

Q: X and good Y are substitute in production. The demand for good X de lowers the price for good X. The…

A: Two goods are called ‘substitutes’ to each other, if they can satisfy the same need of the consumers…

Q: An increase in the price of good X will mostly cause what kind of change?     a shift of the demand…

A: The demand curve shows the association between the amounts of commodity demanded by the consumer at…

Q: Which of the following statements is valid when the market demand curve is vertical?   An increase…

A: This can be described as a terminology of economics that is used as basics buts or bolts of the…

Q: a decrease in supply is represented by  an upward movement along the supply curve a downward…

A: Answer - Need to find - a decrease in supply is represented by  Evaluating the options:- A. an…

Q: When the price of a product rises, the increase in quantity supplied will generally be greater in…

A: A market is a place where the buyers and the sellers interact with each other and the exchange of…

Q: An increase in the likelihood of a dismissal: raises productivity at an increasing rate. raises…

A: Productivity is a measure of the efficiency with which inputs (such as labor, capital, materials,…

Q: For a particular good, a 10 percent increase in price causes a 13 percent decrease in quantity…

A: In a market, the use of price elasticity is very broad as it can be used to make various types of…

Q: Which of the following decreases the production of computers and the supply curve shifts left?…

A: Supply curve shows a positive relationship between price and quantity supplied. Increase in price…

Q: Good weather increases quantity supplied at every price, causing a rightward shift in the supply…

A: Supply curve shifts rightward when there is an increase in the supply and it shifts leftwards when…

Q: The supply curve of rubber balls is given by Q = 100P – 10. What happens to the quantity supplied of…

A: A supply curve is a graphical representation of the relationship between the quantity of a good or…