Suppose consumer income increases. If grass seed is a normal good, the equilibrium price of grass seed willSelect one:O a. decrease, and producer surplus in the industry will decrease.Ob. decrease, and producer surplus in the industry will increase.O c. increase, and producer surplus in the industry will increase.Oc.O d. increase, and producer surplus in the industry will decrease.NegIMG_7969.jpegJPED

Consumer income is a determinant of demand. Changes in income will affect the demand of a good.

Answered: Suppose consumer income increases. If…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Find the producers' surplus at a price level of p = $64 for the price -supply equation p = S(r) = 10 + 0.1a +0.000322. A. $9000. B. $9020. C. $9030. D. $9016. Select one: O C D O O O O
The market demand curve O a. is always steeper than an individual demand curve. O b. shows how the total quantity demanded of a good varies as price varies. O c. is the demand curve for every product in an industry. O d. shows the relationship between price and the number of buyers in a market.
28)
Figure 7-1 Demand A B D QUANTITY Refer to Figure 7-1. Suppose that the price falls from P2 to P1 Area B represents the O a. decrease in producer surplus in the market when the price increases from P1 to P2. b. decrease in producer surplus that results from a downward-sloping demand curve. Oc.consumer surplus to new consumers who enter the market. O d. additional consumer surplus to initial consumers when the price falls. PRICE
What is the consumer surplus when the price is $20? Price 40 35 + 30 25 + 20 15 10 D 10 20 30 40 s0 60 70 00 Duantity Select one: O a. $20 O b. $1000 O. $500 O d. $50
QUESTION 1 When production of a good can be expanded without significantly increasing the overall demand for its inputs: O a.supply for this good will tend to be more inelastic. O b.supply for this good will tend to be more elastic. O c. price for the good will be constant. O d. the elasticity of supply of the product will equal the elasticity of supply of the inputs.
As the manager of the local restaurant, you have the responsibility of boosting the restaurant's revenue to cover its expenses. A couple owns the restaurant, and an interesting dilemma arises. While the male owner suggests lowering food prices as a solution, his wife, on the other hand, advocates for increasing prices. What underlies this difference in their opinions? O a. They both think that demand is inelastic. O b. They both think that demand is elastic. O C. The male owner thinks demand is inelastic, but his wife thinks demand is elastic, O d. The male owner thinks demand is elastic, but his wife thinks demand is inelastic.
Figure 2 Corn Market Price (dollars per bushel of corn) $2 X b D Quantity (millions of bushels of corn per year) Figure 2 illustrates the market for corn. If point "a" represents the original equilibrium and point "b" the new equilibrium, which of the following could shift the supply curve of corn to the right? O A) an increase in consumers preferences for corn OB) an increase in consumers' income if corn is a normal good OC) an increase in labor costs of producing corn OD) an improvement in the technology of producing corn
QUESTION 1 When there is a technological advance in the cheese industry, consumer surplus in that market will Ⓒ a not change, since technology affects producers and not consumers. Ob. Increase. O c.not change, since consumers' willingness to pay is unaffected by the technological advance. Od. Decrease.
les of Microeconomics Spring20 fall20 Consumer surplus is the Select one: O A. price of a good expressed in dollars. O B. value of a good expressed in dollars. on O C. value of a good plus the price paid for it summed over the quantity bought. O D. value of a good minus the price paid for it summed over the quantity bought.
Consider a market in which supply and demand are both unit elastic at the equilibrium (equals 1 in absolute value). Which of the following statements is true? a. Consumer and producer surplus are equal. O b. None of the other answers are correct. O c. Consumer surplus is larger than producer surplus. O d. Producer surplus is larger than consumer surplus.
Air fares are generally lower on Tuesdays and Wednesdays each week. What is a likely explanation for this occurrence? O Supply is relatively variable, and lower demand on these days leads to a lower equilibrium price. O Demand is relatively variable, and lower supply leads to a lower equilibrium price. Lower levels of both supply and demand on these days lead to a lower equilibrium price. Supply is relatively fixed, and lower demand on these days leads to a lower equilibrium price. Demand is relatively fixed, and lower supply leads to a lower equilibrium price. OO

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