Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Question
Chapter 8, Problem 10MC
To determine
Shift of supply curve.
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1. When price increases __________________ increases.
2.When price increases __________________decreases.
3. The height of the supply curve represents the ____________________ for each quantity.
4. The height of the demand curve represents the __________________ for each quantity.
5. What must be given up to produce one additional unit is called the.....
Options:
supply
marginal value
total cost
quantity supplied
quantity demanded
marginal cost
demand
total value
Which would cause a new equilibrium price to be lower and at a lower quantity sold?
A. The demand curve shifts to the right.
B. The demand curve shifts to the left.
C. The supply curve shifts to the right.
D. The supply curve shifts to the left.
Suppose the demand of a product decreases. What will be the effect on the market equilibrium price and quantity if supply is perfectly inelastic? If supply is perfectly inelastic, then
A. the equilibrium price will decrease and the equilibrium quantity will decrease.
B. the equilibrium price will decrease and the equilibrium quantity will not change.
C. the equilibrium price will not change and the equilibrium quantity will not change.
D. the equilibrium price will increase and the equilibrium quantity will increase.
Chapter 8 Solutions
Managerial Economics: A Problem Solving Approach
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- An increase in the price of Samsung phones would cause a decrease in the _______ for Samsung phones and an increase in the _______ for Apple phones. a. demand, demand b. demand, quantity demanded c. quantity demanded, quantity demanded d. quantity demanded, demandarrow_forwardHow would you work this?arrow_forwardcarefully explain what is happening in the market for tea. indicate the impact if any on demand, supply,price and quantity .coffee and tea are demand substitutes. coffee plantations increase the supply of coffee. choose the suitable answer. 1) Impact on demand a. decrease equilibrium quantity b.excess supply c. increase equilibrium quantity d. decrease towards equilibrium e.increase towards equilibrium f. change in price in uncertain g.decrease equilibrium price h.excess demand i. change in quantity uncertain j.increase equilibrium price k. no impact l.shift outwards/ to right m.shift inwards/to leftarrow_forward
- Demand, Supply, Market Equilibrium a.Demand: i. Please Thoroughly and completely define demand. ii. Please state the law of demand. iii. List and thoroughly explain the 3 factors that support the law of demand. Be sure you explain how each actually supports the law of demand. iv. List and explain the determinants of demand and how each can cause an increase in demand and a decrease in demand. List and explain each of the 5 determinants and how they impact demand. v. Thoroughly and completely explain the differences between a change in demand and a change in quantity demanded along with the causes of those changes, and how each change is graphically represented. b. Supply. i.Define supply. ii. State the law of supply. iii. List and explain the determinants of supply and how each can cause an increase in supply and a decrease in supply. iv. Thoroughly and completely explain the differences between a change in supply and a change in quantity supplied,…arrow_forward28.When there is an extension in supply there is _______________________ movement on the supply curve.arrow_forwardAn increase in the ________ of a pumpkins to a decrease in ________ that leads to a ________. a. quantity; supply; change in demand b. demand; quantity demanded; change in supply c. supply; demand; change in price d. price; quantity demanded; movement along the demand curvearrow_forward
- If the price of a product is below the equilibrium price, the result will be A. A shortage of the good. B. A surplus of the good. C. A decrease in the supply of the good. D. An increase in the demand of the good.arrow_forwardTwo things happen simultaneously. Both supply and demand of the good decrease. But demand decreases by more than supply does. What will happen to the equilibrium price on this market? A. The price will increase B. The price will decrease C. The change in price will be ambiguousarrow_forwardThe demand and supply schedule for coffee are: a. If there is no tax on coffee, what is the price and how much coffee is consumed? b. What is the consumer surplus? Show your calculations. c. What is the price elasticity of demand when the price goes up from $4 to $5 dollars? Is the demand for coffee elastic or inelastic? Explain.arrow_forward
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