causes for the shift in the demand curve for the firm.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 18, Problem 1FT

Subpart (a):

To determine

causes for the shift in the demand curve for the firm.

Subpart (a):

Expert Solution

Explanation of Solution

The demand comes from all the economic agents such as the households, firms as well as the government. The demand is depended on the price level of the economy. The increase and decrease in the price level determines the level of demand in the economy. The aggregation of all the individual demands in the economy is known as the aggregate demand thus, the aggregate demand explains the relationship between the general price level and the level of real GDP demanded in the economy by the economic agents such as the households, firms and the government.

Here, in the case of the McDonald's, the main reason for the increase in the quantity demanded which shifts the demand curve of the firm towards the right is the opening up of the new school. This means that the population in the locality increases and this increase in the population causes the increase in the quantity demanded of the firm. Thus, the demand shifter in the case of McDonald's is the rise in population.

Economics Concept Introduction

Concept introduction:

Aggregate Demand curve: It is the curve which shows the relationship between the price level in the economy and the quantity of real GDP demanded by the economic agents such as the households, firms as well as the government.

Subpart (b):

To determine

causes for the shift in the demand curve for the firm.

Subpart (b):

Expert Solution

Explanation of Solution

When the customers are more concerned about the cleanliness in the restaurants, all the restaurants have to keep employees for the purpose of cleaning the restaurant premises as well as the floor of the restaurant and keep it dirt free. This means that the demand for the labor for these purposes increases and this increase in demand and shift in demand is caused because of the changes in the tastes and preferences of the consumers.

Economics Concept Introduction

Concept introduction:

Aggregate Demand curve: It is the curve which shows the relationship between the price level in the economy and the quantity of real GDP demanded by the economic agents such as the households, firms as well as the government.

Subpart (c):

To determine

causes for the shift in the demand curve for the firm.

Subpart (c):

Expert Solution

Explanation of Solution

The robots do the work of cleaning and thus, it can replace a labor for the purpose of the cleaning. This means that the robots are the substitutes for the labor for the cleaning purpose. So, when the robots become cheaper, it would increase the demand for robots and cause fall in the demand for the cleaning labors. Here, the demand shifter is the substitutes of labor which is robots.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

not use ai please

1. Lisa has $48 per week set aside for coffees (x) and lunches (z). The price of coffee is $4 and lunches are $6. What is Lisa's budget line equation (with z on the left-hand side)? Graph the budget line, and show how it changes when the price of lunches rise to $8 (including intercepts). What is the new budget line equation? 2. Suppose utility for a consumer of movies (x) and golf (z) is U = 20x0.420.5. The consumer has set aside $1000 to consumer movies and golf for a year. a. If the price of movies is $20 and the price of golf is $40, what is the utility-maximizing consumption of movies and golf? b. Show the optimal consumption bundle on a graph, showing a budget line (with intercepts), a tangent indifference curve, and the optimal choice. 3. Sam has set aside $480 for entertainment this month, which is golf (x) and/or bowling (z). A round of golf is $40 and a night of bowling is $30. His utility function is U = 3x + 2z. a. What is his MRS? b. Solve for the optimal choice of golf…

Question Seven There are specific applications of the hidden-action or moral hazard model. Consider employment contracts signed between a firm's owners and a manager who runs the firm on behalf of the owners. The manager is offered an employment contract which they can accept and decide how much effort, e ≥ 0, to exert. Suppose that an increase in effort, e, increases the firm's gross profit, not including payments to the manager, but is personally costly to the manager and the firm's gross profit, Пg, takes the following form: Пg = e +ε, ε~N(0,2). Let s denote the salary, which may depend on effort and/or gross profit, depending on what the owner can observe, offered as part of the contract between the owner and manager. Suppose that the manager is risk averse and has a utility function with respect to salary of the form: Aσ² U(W)=μ- 2 a) Derive the optimal result of the owner's expected net profit where there is full information and state what it implies. b) Suppose now that the…

Answer 2

Question

Chapter 18, Problem 1FT

Subpart (a):

To determine

causes for the shift in the demand curve for the firm.

Subpart (a):

Expert Solution

Explanation of Solution

The demand comes from all the economic agents such as the households, firms as well as the government. The demand is depended on the price level of the economy. The increase and decrease in the price level determines the level of demand in the economy. The aggregation of all the individual demands in the economy is known as the aggregate demand thus, the aggregate demand explains the relationship between the general price level and the level of real GDP demanded in the economy by the economic agents such as the households, firms and the government.

Here, in the case of the McDonald's, the main reason for the increase in the quantity demanded which shifts the demand curve of the firm towards the right is the opening up of the new school. This means that the population in the locality increases and this increase in the population causes the increase in the quantity demanded of the firm. Thus, the demand shifter in the case of McDonald's is the rise in population.

Economics Concept Introduction

Concept introduction:

Aggregate Demand curve: It is the curve which shows the relationship between the price level in the economy and the quantity of real GDP demanded by the economic agents such as the households, firms as well as the government.

Subpart (b):

To determine

causes for the shift in the demand curve for the firm.

Subpart (b):

Expert Solution

Explanation of Solution

When the customers are more concerned about the cleanliness in the restaurants, all the restaurants have to keep employees for the purpose of cleaning the restaurant premises as well as the floor of the restaurant and keep it dirt free. This means that the demand for the labor for these purposes increases and this increase in demand and shift in demand is caused because of the changes in the tastes and preferences of the consumers.

Economics Concept Introduction

Concept introduction:

Aggregate Demand curve: It is the curve which shows the relationship between the price level in the economy and the quantity of real GDP demanded by the economic agents such as the households, firms as well as the government.

Subpart (c):

To determine

causes for the shift in the demand curve for the firm.

Subpart (c):

Expert Solution

Explanation of Solution

The robots do the work of cleaning and thus, it can replace a labor for the purpose of the cleaning. This means that the robots are the substitutes for the labor for the cleaning purpose. So, when the robots become cheaper, it would increase the demand for robots and cause fall in the demand for the cleaning labors. Here, the demand shifter is the substitutes of labor which is robots.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 18, Problem 1FT

Subpart (a):

To determine

causes for the shift in the demand curve for the firm.

Subpart (a):

Expert Solution

Explanation of Solution

The demand comes from all the economic agents such as the households, firms as well as the government. The demand is depended on the price level of the economy. The increase and decrease in the price level determines the level of demand in the economy. The aggregation of all the individual demands in the economy is known as the aggregate demand thus, the aggregate demand explains the relationship between the general price level and the level of real GDP demanded in the economy by the economic agents such as the households, firms and the government.

Here, in the case of the McDonald's, the main reason for the increase in the quantity demanded which shifts the demand curve of the firm towards the right is the opening up of the new school. This means that the population in the locality increases and this increase in the population causes the increase in the quantity demanded of the firm. Thus, the demand shifter in the case of McDonald's is the rise in population.

Economics Concept Introduction

Concept introduction:

Aggregate Demand curve: It is the curve which shows the relationship between the price level in the economy and the quantity of real GDP demanded by the economic agents such as the households, firms as well as the government.

Subpart (b):

To determine

causes for the shift in the demand curve for the firm.

Subpart (b):

Expert Solution

Explanation of Solution

When the customers are more concerned about the cleanliness in the restaurants, all the restaurants have to keep employees for the purpose of cleaning the restaurant premises as well as the floor of the restaurant and keep it dirt free. This means that the demand for the labor for these purposes increases and this increase in demand and shift in demand is caused because of the changes in the tastes and preferences of the consumers.

Economics Concept Introduction

Concept introduction:

Aggregate Demand curve: It is the curve which shows the relationship between the price level in the economy and the quantity of real GDP demanded by the economic agents such as the households, firms as well as the government.

Subpart (c):

To determine

causes for the shift in the demand curve for the firm.

Subpart (c):

Expert Solution

Explanation of Solution

The robots do the work of cleaning and thus, it can replace a labor for the purpose of the cleaning. This means that the robots are the substitutes for the labor for the cleaning purpose. So, when the robots become cheaper, it would increase the demand for robots and cause fall in the demand for the cleaning labors. Here, the demand shifter is the substitutes of labor which is robots.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 18, Problem 1FT

Subpart (a):

To determine

causes for the shift in the demand curve for the firm.

Subpart (a):

Expert Solution

Explanation of Solution

The demand comes from all the economic agents such as the households, firms as well as the government. The demand is depended on the price level of the economy. The increase and decrease in the price level determines the level of demand in the economy. The aggregation of all the individual demands in the economy is known as the aggregate demand thus, the aggregate demand explains the relationship between the general price level and the level of real GDP demanded in the economy by the economic agents such as the households, firms and the government.

Here, in the case of the McDonald's, the main reason for the increase in the quantity demanded which shifts the demand curve of the firm towards the right is the opening up of the new school. This means that the population in the locality increases and this increase in the population causes the increase in the quantity demanded of the firm. Thus, the demand shifter in the case of McDonald's is the rise in population.

Economics Concept Introduction

Concept introduction:

Aggregate Demand curve: It is the curve which shows the relationship between the price level in the economy and the quantity of real GDP demanded by the economic agents such as the households, firms as well as the government.

Subpart (b):

To determine

causes for the shift in the demand curve for the firm.

Subpart (b):

Expert Solution

Explanation of Solution

When the customers are more concerned about the cleanliness in the restaurants, all the restaurants have to keep employees for the purpose of cleaning the restaurant premises as well as the floor of the restaurant and keep it dirt free. This means that the demand for the labor for these purposes increases and this increase in demand and shift in demand is caused because of the changes in the tastes and preferences of the consumers.

Economics Concept Introduction

Concept introduction:

Aggregate Demand curve: It is the curve which shows the relationship between the price level in the economy and the quantity of real GDP demanded by the economic agents such as the households, firms as well as the government.

Subpart (c):

To determine

causes for the shift in the demand curve for the firm.

Subpart (c):

Expert Solution

Explanation of Solution

The robots do the work of cleaning and thus, it can replace a labor for the purpose of the cleaning. This means that the robots are the substitutes for the labor for the cleaning purpose. So, when the robots become cheaper, it would increase the demand for robots and cause fall in the demand for the cleaning labors. Here, the demand shifter is the substitutes of labor which is robots.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 18, Problem 1FT

Subpart (a):

To determine

causes for the shift in the demand curve for the firm.

Subpart (a):

Expert Solution

Explanation of Solution

The demand comes from all the economic agents such as the households, firms as well as the government. The demand is depended on the price level of the economy. The increase and decrease in the price level determines the level of demand in the economy. The aggregation of all the individual demands in the economy is known as the aggregate demand thus, the aggregate demand explains the relationship between the general price level and the level of real GDP demanded in the economy by the economic agents such as the households, firms and the government.

Here, in the case of the McDonald's, the main reason for the increase in the quantity demanded which shifts the demand curve of the firm towards the right is the opening up of the new school. This means that the population in the locality increases and this increase in the population causes the increase in the quantity demanded of the firm. Thus, the demand shifter in the case of McDonald's is the rise in population.

Economics Concept Introduction

Concept introduction:

Aggregate Demand curve: It is the curve which shows the relationship between the price level in the economy and the quantity of real GDP demanded by the economic agents such as the households, firms as well as the government.

Subpart (b):

To determine

causes for the shift in the demand curve for the firm.

Subpart (b):

Expert Solution

Explanation of Solution

When the customers are more concerned about the cleanliness in the restaurants, all the restaurants have to keep employees for the purpose of cleaning the restaurant premises as well as the floor of the restaurant and keep it dirt free. This means that the demand for the labor for these purposes increases and this increase in demand and shift in demand is caused because of the changes in the tastes and preferences of the consumers.

Economics Concept Introduction

Concept introduction:

Aggregate Demand curve: It is the curve which shows the relationship between the price level in the economy and the quantity of real GDP demanded by the economic agents such as the households, firms as well as the government.

Subpart (c):

To determine

causes for the shift in the demand curve for the firm.

Subpart (c):

Expert Solution

Explanation of Solution

The robots do the work of cleaning and thus, it can replace a labor for the purpose of the cleaning. This means that the robots are the substitutes for the labor for the cleaning purpose. So, when the robots become cheaper, it would increase the demand for robots and cause fall in the demand for the cleaning labors. Here, the demand shifter is the substitutes of labor which is robots.

Answer 6

Chapter 18, Problem 1FT

Subpart (a):

To determine

causes for the shift in the demand curve for the firm.

Subpart (a):

Expert Solution

Explanation of Solution

The demand comes from all the economic agents such as the households, firms as well as the government. The demand is depended on the price level of the economy. The increase and decrease in the price level determines the level of demand in the economy. The aggregation of all the individual demands in the economy is known as the aggregate demand thus, the aggregate demand explains the relationship between the general price level and the level of real GDP demanded in the economy by the economic agents such as the households, firms and the government.

Here, in the case of the McDonald's, the main reason for the increase in the quantity demanded which shifts the demand curve of the firm towards the right is the opening up of the new school. This means that the population in the locality increases and this increase in the population causes the increase in the quantity demanded of the firm. Thus, the demand shifter in the case of McDonald's is the rise in population.

Economics Concept Introduction

Concept introduction:

Aggregate Demand curve: It is the curve which shows the relationship between the price level in the economy and the quantity of real GDP demanded by the economic agents such as the households, firms as well as the government.

Answer 7

Chapter 18, Problem 1FT

Subpart (a):

To determine

causes for the shift in the demand curve for the firm.

Answer 8

Subpart (a):

Expert Solution

Explanation of Solution

The demand comes from all the economic agents such as the households, firms as well as the government. The demand is depended on the price level of the economy. The increase and decrease in the price level determines the level of demand in the economy. The aggregation of all the individual demands in the economy is known as the aggregate demand thus, the aggregate demand explains the relationship between the general price level and the level of real GDP demanded in the economy by the economic agents such as the households, firms and the government.

Here, in the case of the McDonald's, the main reason for the increase in the quantity demanded which shifts the demand curve of the firm towards the right is the opening up of the new school. This means that the population in the locality increases and this increase in the population causes the increase in the quantity demanded of the firm. Thus, the demand shifter in the case of McDonald's is the rise in population.

Answer 9

Subpart (a):

Expert Solution

Answer 10

Subpart (a):

Expert Solution

Answer 11

Expert Solution

Answer 12

Economics Concept Introduction

Concept introduction:

Aggregate Demand curve: It is the curve which shows the relationship between the price level in the economy and the quantity of real GDP demanded by the economic agents such as the households, firms as well as the government.

Answer 13

Subpart (b):

To determine

causes for the shift in the demand curve for the firm.

Subpart (b):

Expert Solution

Explanation of Solution

When the customers are more concerned about the cleanliness in the restaurants, all the restaurants have to keep employees for the purpose of cleaning the restaurant premises as well as the floor of the restaurant and keep it dirt free. This means that the demand for the labor for these purposes increases and this increase in demand and shift in demand is caused because of the changes in the tastes and preferences of the consumers.

Economics Concept Introduction

Concept introduction:

Aggregate Demand curve: It is the curve which shows the relationship between the price level in the economy and the quantity of real GDP demanded by the economic agents such as the households, firms as well as the government.

Answer 14

Subpart (b):

To determine

causes for the shift in the demand curve for the firm.

Answer 15

Subpart (b):

Expert Solution

Explanation of Solution

When the customers are more concerned about the cleanliness in the restaurants, all the restaurants have to keep employees for the purpose of cleaning the restaurant premises as well as the floor of the restaurant and keep it dirt free. This means that the demand for the labor for these purposes increases and this increase in demand and shift in demand is caused because of the changes in the tastes and preferences of the consumers.

Answer 16

Subpart (b):

Expert Solution

Answer 17

Subpart (b):

Expert Solution

Answer 18

Expert Solution

Answer 19

Economics Concept Introduction

Concept introduction:

Aggregate Demand curve: It is the curve which shows the relationship between the price level in the economy and the quantity of real GDP demanded by the economic agents such as the households, firms as well as the government.

Answer 20

Subpart (c):

To determine

causes for the shift in the demand curve for the firm.

Subpart (c):

Expert Solution

Explanation of Solution

The robots do the work of cleaning and thus, it can replace a labor for the purpose of the cleaning. This means that the robots are the substitutes for the labor for the cleaning purpose. So, when the robots become cheaper, it would increase the demand for robots and cause fall in the demand for the cleaning labors. Here, the demand shifter is the substitutes of labor which is robots.

Answer 21

Subpart (c):

To determine

causes for the shift in the demand curve for the firm.

Answer 22

Subpart (c):

Expert Solution

Explanation of Solution

The robots do the work of cleaning and thus, it can replace a labor for the purpose of the cleaning. This means that the robots are the substitutes for the labor for the cleaning purpose. So, when the robots become cheaper, it would increase the demand for robots and cause fall in the demand for the cleaning labors. Here, the demand shifter is the substitutes of labor which is robots.