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:
Explanation:
From the information given:
(a)
The total production available for the professional computers at the time Mexico uses all resources for production = 30
The total production of computer games at this time = 3 × 30 = 90
Thus, from above, the production possibility curve can be seen in the image attached below.
(b)
The opportunity cost of one professional computer is three computer games. This because, for them to produce one more computer, it is required that they give up three computer games.
(c)
Yes, it is subject to Increasing.
This because the opportunity cost of 1 computer = 3 games
For two computers = 2 × 3 games = 6 games
For three computers = 3 × 3 games = 9 games ... and so on.
(d)
Professional computer production is considered a Capital good.
(e)
Mexico should increase the production of professional computers because they help in more rapid economic growth.
