In the short run, a reduction in oil prices will cause a(n) O increase in P and a reduction in Y. O reduction in P and an increase in Y. O increase in P and an increase in Y. O increase in P and no change in Y.
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- uèstion 1 Supply will be inelastic if the producer is producing in the long run O True O FalseWhen the number of producers are increasing then the supply will OA. Increase OB. Decrease OC. Remain same OD. None of the aboveGiven Supply changed from S1 to S2, whaich of the following statements are TRUE? This is a decrease in supply. This represents an increase in supply. A possible reason for this change is an increase in demand. A possible reason for this change is a decrease in demand. A possible reason for this change is a decrease in resource prices. A possible reason for this change is an increase in resource prices. A possible reason for this change is better production technology. A possible reason for this change is change in consumer tastes. A possible reason for this change is increasing number of sellers. A possible reason for this change is decreasing number of sellers. A possible reason for this change is a lower price of a complement in production.
- You decide to sell pairs of running shoes. Assume that the quantity demanded is alinear function of the price. It is known that if you charge $40 per pair of shoes, thenyou will be able to sell 400 pairs of shoes in a month. If you charge $60 per pair ofrunning shos, then you can sell 300 pairs of shoes in a month. It is also known thatyour monthly fixed cost is $100 and pairs of shoes cost $20 per shoe to produce. Findwhat price you should charge for a pair of shoes in order to maximize profit in amonthIf the price of a product decreases by 10 percent and the quantity demanded increases by 5 percent, then O the producer should lower the price further to sell more and further increase total revenue. the producer should raisc the price, but not as high as it was, to increase total revenue. O the produucer should raise the price higher than where it was to experience higher total revenue. O the producer should change the price back to where it was before the change.In general, a commodity that has greater importance would result to Select one: a. Elastic b. neither c. inelastic d. Unit elastic
- The price elasticity of demand is more likely to be inelastic if Othere are a lot of substitutes available. O the price of the product is a large fraction of income. Othere is a long time frame involved. O the product is a necessity.If the technology for producing is restricted, then there will be afn). Oa Expansion of Supply Ob. Contraction of Supply Oc Expansion of Demand Od. Contraction of Demand Suppose that outmeal and cereal are substitutes. If the price of oatmeal rises, in equilibrium the. Oa. Price of cereal fals and the quantity of cereal falls. Ob. Price of cereal rises and the quantity of cereal rises. O. Price of cereal rises and the quantity of cereal falls. Od. Price of cereal falls and the quantity of cereal rises.In the nonlinear function Y = ax ZC, the parameter c measures Multiple Choice O O O the percent change in X for a 1 percent change in Z. None of these options are correct. the elasticity of Y with respect to Z. ΔΥ/ΔΖ.
- To say there is an elastic demand for a product means that O consumers are not very responsive to a change in the price of the product. there are relatively few substitutes, few competitors, and a short time period under consideration. O there is a positive relationship between price and total revenue. O consumers are very responsive to a change in the price of the product.Predict the impact on each market. Use + and – to indicate whether there will be anincrease or decrease in demand (D), supply (S), equilibrium price (P) and equilibriumquantity (Q). If there is no change, use N, and if the change cannot be predicted, use Ufor uncertain. Market Event D S P Q Canadian Wine Early frost destroys a large percentage of the grape crop - - + - Wood-burning The price of heating oil and natural gas triples + stoves Cell phones Technological advances reduce the costs of producing cell phones Gold Large gold deposits are discovered Fast foods The public show great concern over high sodium and cholesterol in fast foods; also, there is an increase in the minimum wage Bicycles There is increasing concern by consumers about physical fitness; also, the price of gasoline falls.Illustrate the appropriate change and specify whethereach change represents an increase or a decrease. Given the existing problems with its airbag system, Honda Motors hasexperienced a decline in sales of its Accord automobile.