If coconuts are considered a normal good and there is an expectation on the part of consumers that the prices of coconuts will r
ise significantly in the near future, then the movement that would take place in the model could be:_______.
1 answer:
Answer:
either E ⇒ B, or A ⇒ C
Explanation:
When consumers expect that the price of a normal good will increase significantly in the near future, the demand curve tends to shift to the right (at least temporarily). This means that the total quantity demanded of coconuts will increase at every price level.
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Answer:
The oranges should be picked in 2 weeks for maximum return
Explanation:
We assume that the return of the owner is y ($)
Assume that the number of weeks the oranges should be picked to have maximum return is x (weeks). (x≥0)
If collect now, the price for each bushel is $27
As the price per bushel decrease by $1.50 per bushel each week
=> After x weeks, the price of a bushel decrease: 1.5x ($)
=> The price of 1 bushel after x weeks is: 27 - 1.5x ($)
If collect now, each tree can yield 7 bushels
As the yield increases by half a bushel per week for the next 5 weeks
=> After x weeks with x ≤ 5, each trees would yields: 7 + 0.5x (bushels)
The return = The price of each bushes × The quantity of bushels
=>
⇔
⇔
We have: if the equation has the form of with a≠0, its maximum value is:
In the equation , we have: a = -0.75; b = 3; c = 189
=>
To look for the number of weeks, we should find x (0≤x≤5) with which y = 192
⇔
⇔
⇔
⇔
⇔
⇔ x = 2
The oranges should be picked in 2 weeks for maximum return