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olganol [36]
4 years ago
8

One of the most important ingredients in bubble tea is the tapioca pearls that are added to the tea. If the price of tapioca flo

ur increases, what will happen to the supply of bubble tea, all else being equal?
a) The supply of bubble tea will increase modestly.
b) The supply of bubble tea will not change.
c) The supply of bubble tea will increase dramatically.
d) The supply of bubble tea will decrease.
Business
1 answer:
Mamont248 [21]4 years ago
4 0

Answer: The correct answer is "d) The supply of bubble tea will decrease.".

Explanation: If everything else remains constant: An increase in the price of tapioca flour causes producers a higher cost, therefore this higher production cost will cause a decrease in supply.

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3 years ago
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4 0
3 years ago
When the price of candy bars is $1.00, the quantity demanded is 500 per day. When the price falls to $0.80, the quantity demande
Wittaler [7]

Answer:

The demand for candy bars is inelastic

Explanation:

The midpoint rule calculate the price elasticity of demand as percentage change in quantity divided by the percentage change in price:

<u>% change in quantity </u>

\frac{Q_2-Q_1}{ \frac{Q_2 + Q_1}{2} }  \times 100

The quantity demanded increased from 500 to 600. We have

Q_1 = 500 \: and \: Q_2 = 600

\implies \frac{600 - 500}{ \frac{600 + 500}{2} }  \times 100 \\  =  \frac{100}{ \frac{1100}{2} } \\  =  \frac{100}{550} \\  =  \frac{2}{11}

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\frac{P_2-P_1}{ \frac{P_2 + P_1}{2} }  \times 100

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