In the table above the output level where the price minus atc (average total cost) is a maximum (or least negative) is the maxim
1 answer:
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Answer:
a. less ice cream, less coffee
Explanation:
The percentage change in CPI is given by:
The percentage change in the prices of coffee and ice cream, respectively, are:
Both coffee and ice cream had an increase in price above the CPI increase, which means that both goods are being sold above the equilibrium price and thus their demand is likely to fall.
People likely will buy less ice cream, less coffee
Given the table below
![\begin{tabular} {|p {1cm}|p {1.4cm}|p {1.4cm}|p {1.5cm}|p {1.4cm}|p {1.4cm}|} {Price per hour&Quantity Supplied by Ann&Quantity Supplied by Bob&Quantity Supplied by Carlos&Market Quantity Supplied&Market Quantity Demanded\\[1ex] \$50&94&35&19&148&5\\ 45&93&33&14&140&8\\ 40&90&30&10&130&11\\ 35&81&27&6&114&16\\ 30&68&20&2&90&22\\ 25&50&12&0&62&30\\ 20&32&7&0&39&39\\ 15&20&0&0&20&47\\ 10&10&0&0&10&57 \end{tabular}](https://tex.z-dn.net/?f=%5Cbegin%7Btabular%7D%0A%7B%7Cp%20%7B1cm%7D%7Cp%20%7B1.4cm%7D%7Cp%20%7B1.4cm%7D%7Cp%20%7B1.5cm%7D%7Cp%20%7B1.4cm%7D%7Cp%20%7B1.4cm%7D%7C%7D%0A%7BPrice%20per%20hour%26Quantity%20Supplied%20by%20Ann%26Quantity%20Supplied%20by%20Bob%26Quantity%20Supplied%20by%20Carlos%26Market%20Quantity%20Supplied%26Market%20Quantity%20Demanded%5C%5C%5B1ex%5D%0A%5C%2450%2694%2635%2619%26148%265%5C%5C%0A45%2693%2633%2614%26140%268%5C%5C%0A40%2690%2630%2610%26130%2611%5C%5C%0A35%2681%2627%266%26114%2616%5C%5C%0A30%2668%2620%262%2690%2622%5C%5C%0A25%2650%2612%260%2662%2630%5C%5C%0A20%2632%267%260%2639%2639%5C%5C%0A15%2620%260%260%2620%2647%5C%5C%0A10%2610%260%260%2610%2657%0A%5Cend%7Btabular%7D)
From the table it can be seen that at the price of $20, the quantity supplied is equal to the quantity demanded equal to 39.
Also notice that at that price, Carlos is not supplying any service.
Therefore, the equilibruim price <span>of tutoring services be if Carlos decided to stop tutoring is $20.</span>
From the table it can be seen that at the price of $20, the quantity supplied is equal to the quantity demanded equal to 39.
Also notice that at that price, Carlos is not supplying any service.
Therefore, the equilibruim price <span>of tutoring services be if Carlos decided to stop tutoring is $20.</span>