Suppose you observe that a particular business has earned positive profits over time and maintained a large share of the market. Which of the following is likely to be true?  Group of answer choices Demand for the product is probably elastic The business must be engaging in price discrimination There is probably a barrier to entry preventing new firms from competing Supply must be inelastic Government intervention in this market is probably limited

Q: The inverse demand for a product is given by P = 400 - 5Q, where Q measures the number of units and…

A: Approach to solving the question: Detailed explanation: Before Technological Innovation:Inverse…

Q: Consider supply in the long run. Assume that a specific tax is imposed on a good that was…

A: Introduction: When all inputs are variable, the long provide is the provision of commodities out…

Q: Product Z is complementary to Product X. The price for Product Z goes up. A) The demand curve will…

A: Complementary goods are those which are usually consumed in a fixed-proportion. When the price of a…

Q: (b) Derby County Football Club has found that the price elasticity of demand for their tickets is…

A: The responsiveness of demand to change with its price is measured by the price elasticity of demand.…

Q: The market for blankets is perfectly competitive. The market price is P=$13. Market demand is Q=319…

A: When the formula will be creating an absolute value exceeding 1 the demand is elastic. When the…

Q: In competitive markets, the supply of a firm with no fixed costs and constant returns to scale will…

A: In a competitive market, a firm's output and pricing decision depends on itz elasticity and cost…

Q: If the marginal cost to make a good is $80 and the price elasticity of demand is -4, what price…

A: The price of goods and services acquired by producers and customers is referred to as the cost. The…

Q: You manage a parking garage in a small college town. The faculty elasticity of demand is -1.33 and…

A: Given information: You manage a parking garage in a small college town. The faculty elasticity of…

Q: what sort of shift in supply or demand would result in a market equilibrium with higher prices and…

A: Demand curve is downward sloping and supply curve is upward sloping in the price, quantity space.…

Q: Assume that the Morgantown Pizza is the exclusive destination for pizzas for WVU students. In other…

A: Price elasticity of demand is a measure of the change in quantity demanded of a good or service to…

Q: MICROECONOMICS In a given market the demand curve is the following: D(p) = 277 - 4p. Determine the…

A: Given that, Market demand curve is  D(p) = 277-4p

Q: If the demand curve is Q(p)=pa (where a<0), what is the elasticity of demand? If the marginal cost…

A: An elastic demand is one in which the change in quantity demanded due to a change in price is large;…

Q: Market failure occurs when: prices of essential goods such as gas become very high individual…

A: Market failure occurs when the free market does not allocate resources efficiently. This can happen…

Q: Which of the following is not a supply shifter for physician services? (a) Increase in nurse salary…

A: The supply of physician services can be influenced by various factors that can shift the supply…

Q: Assume the market for oil is perfectly competitive, with the following market demand and supply…

A: Meaning of Perfect Competition: The term perfect competition refers to the market under which…

Q: A taxi company finds success in its city of operation. Due to this success, a new company comes into…

A: In economics, studying a market scenario is considered as a significant learning as it helps to…

Q: During the pandemic, many workers started to work from home using digital technologies. Children…

A: The equilibrium price and quantity of a good sold in the market are determined by the forces of…

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

A: The demand is downward sloping curve which reflects the negative relationship between the price and…

Q: Price elasticity of supply (PES):   Range of values Determinants Time Availability of producer…

A: When talking about price elasticity of demand, there are various factors that affect the…

Q: A competitive firm can sell any amount if the firm set a price equal to the market price. True or…

A: In a perfectly competitive market, the market price is determined by the intersection of the market…

Q: Given a demand of q = 100 – 5p and a cost of c(q) = 4q. What is the equilibrium retail price p,…

A: Demand: - Demand is the relationship between the quantity demanded and the price of a good. There is…