1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mario62 [17]
3 years ago
15

Determine the effect upon equilibrium price and quantity sold if the following changes occur in a particular market:a. Consumers

’ income increases and the good is normal.b. The price of a substitute good (in consumption) increases.c. The price of a substitute good (in production) increases.d. The price of a complement good (in consumption) increases.e. The price of inputs used to produce the good increases.f. Consumers expect that the price of the good will increase in the near future.g. It is widely publicized that consumption of the good is hazardous to health.h. Cost reducing technological change takes place in the industry.For each of the pair of events indicated below, perform qualitative analysis to predict the direction of change in either the equilibrium price or equilibrium quantity. Explain why the change is indeterminate.a. Both a and h conditions occur simultaneously.b. Both d and e conditions occur simultaneously.c. Both d and h conditions occur simultaneously.d. Both f and c conditions occur simultaneously.
Business
1 answer:
gtnhenbr [62]3 years ago
3 0

Answer:

Explanation:

a. Consumer’s income increases and the good is normal. Equilibrium price stays same and quantity will rise

b. The price of a substitute good (in consumption) increases. Equilibrium price stays same and quantity sold will rise

c. The price of a substitute good (in production) increases. Equilibrium price stays same and quantity sold will rise

d. The price of a complement good (in consumption) increases. Equilibrium price rises and quantity sold will decline.

e. The price of inputs used to produce the good increases. Equilibrium price rises and quantity sold will decline.

f. Consumers expect that the price of the good will increase in the near future. Equilibrium price rises and quantity sold will also rise.

g. It is widely publicized that consumption of the good is hazardous to health. Equilibrium price declines and quantity sold will also decline.

h. Cost reducing technological change takes place in the industry. Equilibrium price declines and quantity sold will rise.

For each of the pair of events indicated below, perform qualitative analysis to predict the direction of change in either the equilibrium price or equilibrium quantity. Explain why the change is indeterminate.

a. Both a and h conditions occur simultaneously. This will raise the equilibrium since good is now cheaper to produce and consumer has more income to purchase it however effect on price will be dubious.

b. Both d and e conditions occur simultaneously. Equilibrium price rises and quantity will decline.

c. Both d and h conditions occur simultaneously. Dubious effect increase in price of complementary good and reduction in cost due to latest technology will offset each other’s effect and equilibrium will not change if the magnitude of both effects is the same

d. Both f and c conditions occur simultaneously Equilibrium price rises and Equilibrium quantity will also rise.

You might be interested in
Meeting the needs of the present through economic development without compromising the needs of future generations to meet their
Veseljchak [2.6K]

Answer:

Sustainability.

Explanation:

Sustainability intends on addressing current requirements, without undermining future generations to fulfill their needs. The notion of sustainable development consists of three key elements including economic, social, and environmental which correspond to three P's that are Profit, people, and planet respectively. It is a complex process that expands the objectives of businesses from immediate profit to future-oriented goals like energy conservation, work, and safety measures in an organization, etc.

3 0
2 years ago
There are not enough goods and services to meet the wants of the population
brilliants [131]

Answer:

Explanation:

The fact that limited amounts of goods and services are available to meet unlimited wants is called scarcity. ... Scarcity always exists. There simply are not enough goods and services to supply all of society's needs and wants.

5 0
2 years ago
Pet World is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR c
Len [333]

Answer:

C) 2.57%

Explanation:

Pet World's net cash flows:

<u>Year  </u>                  <u>Cash flow</u>

0                           -$9,500  

1                             $2,000

2                            $2,025

3                            $2,050

4                            $2,075

5                            $2,100

In order to find the rate of return we can use an excel spreadsheet and the IRR function =IRR (values,[guess]) =IRR (-9500,2000,2025,2050,2075,2100)

=IRR = 2.57%

3 0
2 years ago
The Lunch Counter is expanding and expects operating cash flows of $32,500 a year for seven years as a result. This expansion re
storchak [24]

Answer:

$109,688.89

Explanation:

According to the scenario, computation of given data are as follows,

Formula for Net present value are as follows,

NPV = -Investment in fixed asset - Net working Capital + Operating cashflow × ( 1 - (1+r)^{-n}) ÷ r + Net working capital ×(1+r)^{-n}

Where, r = rate of return

n = number of years

By putting the value, we get

NPV = -28,000 - 2,800 + 32,500 × ( 1 - (1+0.14)^{-7}) ÷ 0.14 + 2,800 × (1+0.14)^{-7}

By solving the above equation, we get

NPV = $109,688.89

8 0
3 years ago
Government-regulated maximum rent levels are an example of what? A. price floors B. public good C. rationing D. price ceilings
OLga [1]

D. Price ceiling

This is a government regulation that establishes a maximum price for a specific thing.

3 0
3 years ago
Other questions:
  • For each of the items indicate whether its amount affects the bank or book side of a bank reconciliation and is an addition or a
    8·2 answers
  • What is your credit score based on
    8·2 answers
  • Establezca estrategias para controlar la efectividad del presupuesto en el emprendimiento.
    9·1 answer
  • Identify the accounting assumption or principle that is described below.
    7·1 answer
  • If your college leadership sought your advice on setting tuition, why would it matter if your college was the only college for m
    12·1 answer
  • Which of the following scenarios is an example of monopolistic competition?
    12·2 answers
  • Cash flows from operations may not be sufficient for a firm to keep up with growth-related financing needs, or the firm may not
    9·1 answer
  • Which of the following represents the correct order in which the indicated budget documents for a manufacturing company would be
    6·1 answer
  • GDP is not a perfect measure of well-being; for example, a. GDP incorporates a large number of non-market goods and services tha
    5·1 answer
  • What is the term for the daily activity of handling economic resources and planning for future economic goals?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!