"Question 1" (True or False)Answer the following questions and state your brief explanation.i.If two goods are complementary, it means that when the price of one good increases, the demandfor the other rises (TRUE/FALSE) Explain!ii.If the price of gasoline rises by 10 percent and new car sales fall by 5 percent, this indicates thatthese two goods are complementary (TRUE/FALSE) Explain!ii.The price elasticity number for necessities will be greater than 1. (TRUE/FALSE) Explain!iv.Demand is elastic if the consumer has only a few substitutes to choose from. (TRUE/FALSE) Explain!Short-run choices imply that at least one factor of production is fixed. (TRUE/FALSE) Explain!V.vi.The productivity of any input is independent and is not affected by the other resources that areused. (TRUE/FALSE) Explain!vii.When a firm is able to achieve the output indicated by a production function, it is producing withtechnical efficiency. (TRUE/FALSE) Explain!viii.The law of diminishing returns indicates that the marginal physical product of a variable inputdeclines as more of it is employed, ceteris paribus. (TRUE/FALSE) Explain!

"Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

"Question 1" (True or False) Answer the following questions and state your brief explanation. i. If two goods are complementary, it means that when the price of one good increases, the demand for the other rises (TRUE/FALSE) Explain! ii. If the price of gasoline rises by 10 percent and new car sales fall by 5 percent, this indicates that these two goods are complementary (TRUE/FALSE) Explain! iii. The price elasticity number for necessities will be greater than 1. (TRUE/FALSE) Explain! iv. Demand is elastic if the consumer has only a few substitutes to choose from. (TRUE/FALSE) Explain! V. Short-run choices imply that at least one factor of production is fixed. (TRUE/FALSE) Explain! vi. The productivity of any input is independent and is not affected by the other resources that are used. (TRUE/FALSE) Explain! vii. When a firm is able to achieve the output indicated by a production function, it is producing with technical efficiency. (TRUE/FALSE) Explain! viii. The law of diminishing returns indicates that the marginal physical product of a variable input declines as more of it is employed, ceteris paribus. (TRUE/FALSE) Explain!

"Question 1" (True or False) Answer the following questions and state your brief explanation. i. If two goods are complementary, it means that when the price of one good increases, the demand for the other rises (TRUE/FALSE) Explain! ii. If the price of gasoline rises by 10 percent and new car sales fall by 5 percent, this indicates that these two goods are complementary (TRUE/FALSE) Explain! iii. The price elasticity number for necessities will be greater than 1. (TRUE/FALSE) Explain! iv. Demand is elastic if the consumer has only a few substitutes to choose from. (TRUE/FALSE) Explain! V. Short-run choices imply that at least one factor of production is fixed. (TRUE/FALSE) Explain! vi. The productivity of any input is independent and is not affected by the other resources that are used. (TRUE/FALSE) Explain! vii. When a firm is able to achieve the output indicated by a production function, it is producing with technical efficiency. (TRUE/FALSE) Explain! viii. The law of diminishing returns indicates that the marginal physical product of a variable input declines as more of it is employed, ceteris paribus. (TRUE/FALSE) Explain!

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Question 8 If a rise in the price of good X results in the amount of money spent ongood Y remaining the same, then X and Y are perfect substitutes X and Y are perfect complements The cross-price elasticity of demand for Y with respect to X is 1 The cross-price elasticity of demand for Y with respect to X is 0
Which of the following could have caused the price elasticity of demand to change from a value of -0.5 to -0.8? Question 20 options: 1) The increase in substitutes good available. 2) A rise in the price of substitute good. 3) A rise in demand for the good. 4) A rise in income. Next Page
Question 1 If the income elasticity of a product is greater than 1, which if the following is true? a) The product is an inferior good b) The product is a luxury c) The product is a necessity
Question attached
If you could please help me understand how to use the given information to solve this problem, that would be greatly appreciated! Thanks!
4-6 Suppose that the price of croissants rises from $2 to $3 per unit. Use the mid-point approach to get the elasticity. The quantity of orange juice purchased falls from 10 million bottles to 5 million bottles. What is the cross-price elasticity of demand between croissants and orange juice? Are they complements or substitutes? The quantity of jelly purchased increases from 10 million jars to 20 million jars. What is What is the cross-price elasticity of demand between croissants and orange juice? Are they complements or substitutes?
INFO: Yesterday, the price of envelopes was $3 a box, and Julie was willing to buy 10 boxes. Today, the price has gone up to $3.75 a box, and Julie is now willing to buy 8 boxes. What is Julie’s elasticity of demand? _____ (Hint: only a number goes here) Is Julie's demand for envelopes elastic or inelastic? Explain your answer in a complete sentence(s) here:
Why do we say goods become more elastic over time? Question 9 options: people's incomes will increase, and so the elasticity of demand decreases. the good's price will have a chance to return to its previous level. people can find more substitutes, and so the elasticity of demand decreases. people can find more substitutes, and so the elasticity of demand increases.
Question 3 Suppose a Palestinian company (Siniora Food Industries Company) sells 20,000 units when the price is 16 NIS, but sells 30,000 units when the price falls to 14 NIS. A. What is the midpoint method for calculating percentage change in the quantity sold (just Calculate the result)? B. What is the midpoint method for calculating percentage change in the price of the products sold ( just Calculate the result)? C. Calculate the price elasticity of demand (Based on set prices). Is demand elastic or inelastic? D. What happens to quantity sold when price decreases 4% (suppose the elasticity demand is constant and equal the value found in part c)?
B) When the price of Good A is $27, the quantity demanded of Good B is 1,200 units. When the price of Good A falls to $23 the quantity demanded of Good B falls to 800 units. i. Calculate the cross elasticity of demand ii. Are the goods substitutes or complements? Explain your choice. iii. Explain how cross elasticity of demand is used. vi. Explain how income elasticity of demand is used.
Elasticity Suppose that the price of product A decreases from $22 to $18 and, as a result, the quantity purchased of A increases from 200 to 250, the quantity purchased of B increases from 50 to 60 and the quantity purchased of product C falls from 600 to 550. What is the price elasticity of demand of product A? ( What is the cross-elasticity of product A for product B? What is the cross-elasticity of product A for product C? Comment on the three elasticity measures- that is, what do the nurmbers meant,
6)An increase in supply, ceteris paribus, lowers a good's price. If the total revenue of sellers now falls, we know * a)that the good's price elasticity of demand was greater than 1. b)that the good's price elasticity of demand was smaller than 1. c)that the good's demand curve was vertical. d)that the good's price elasticity of demand was equal to 1 e)that the good's demand curve was a rectangular hyperbola.