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
In-s [12.5K]
2 years ago
9

Determine how the equilibrium price and equilibrium quantity in the market for coffee changes if the price of tea, a substitute

for coffee, decreases, and due to better weather, the price of coffee beans also decreases. Equilibrium price Equilibrium quantity
Business
1 answer:
kkurt [141]2 years ago
5 0

Answer:

Equilibrium price = Decreases

Equilibrium quantity = Indeterminate

Explanation:

Here, we suppose that tea and coffee are substitute goods and we know that substitute goods have a positive cross price elasticity of demand.

So, if there is a fall in the price of tea then as a result the demand for coffee decreases which shifts the demand curve of coffee leftwards.

And, there is a fall in the price of coffee beans due to the better weather condition and coffee beans are used as an ingredient for producing coffee.

Hence, there is a fall in the cost of production of coffee which increases the supply of coffee and shifts the supply curve of coffee rightwards.

Therefore, there is a fall in the equilibrium price level of coffee and the effect of these shifts on the equilibrium quantity is indeterminate because that will be dependent upon the magnitude of the shifts of both the curves.

You might be interested in
Which of the following is a common role of government in a” market economy? a. Provide public goods b. Own the factors of produc
lozanna [386]
It is A. Provide public goods
Hope this helps!
4 0
3 years ago
Calculate the activity rate per grooming order. $fill in the blank 1 per grooming order 2. Calculate, in terms of grooming order
atroni [7]

Solution :

1. calculate the activity rate per grooming order

Activity rate                                                        <u>    Amount paid to agent     </u>

                                                                             Number of grooming order

                                                                             <u>            28,000          </u>

                                                                                          4,000

Therefore, the activity rate  = 7 per grooming order

2. Calculating, in terms of grooming order, the :

a. Total activity availability

   Number of grooming orders  (A)                         =    4,000

   Number of agents (B)                                            <u>            5   </u>

  Total activity availability (A x B)                               20,000

b). Total activity availability                                     20,000

Less: Orders actually processed                        <u>   (17,800)   </u>          

Unused capacity                                                     2,200

3. calculating the dollar cost of :

a). Amount paid to the agent (A                       28,000

Number of agents (B)                                      <u>          5    </u>

Total activity availability in dollars (AxB)        140,000

b). Unused capacity (A)                                       2,200

Activity rate (B)                                                 <u>           7 </u>

Unused capacity in dollars (AxB)                    15,400

                                                 

4 0
2 years ago
What is one cost of avoiding insurance?
kkurt [141]

Answer: One of the costs of not having insurance is the cost of repairing. Another cost is paying insurance premiums. Losses caused by a lack of insurance are the price of not having insurance.

8 0
2 years ago
A working group convened by NASAA has developed a model fee disclosure schedule to help investors better understand the costs in
WARRIOR [948]

Answer:

Correct Answer:

C) issuance of a stock certificate

Explanation:

In the model developed by group working for NASAA which was to disclose model fee and cost involved in doing business with them, it would disclose all associated cost involved. <em>The only thing it would not disclose would be regards to stock certificate issuance since it falls outside their perview.</em>

7 0
3 years ago
A visual of a map color-coded to indicate states' rates of consumer debt is an example of
AleksAgata [21]
A cosmograph simply because that is not what any of the other graphs look like. D is the only one that can take the shape of a state.
6 0
2 years ago
Read 2 more answers
Other questions:
  • A tiger develops lockjaw and can no longer open its mouth. Which of the four life functions will not be able to perform? (it obv
    11·1 answer
  • A(n) _____ allows you to create a wireless connection among your smart devices.
    6·2 answers
  • Cement Works has a beginning cash balance for the quarter of $1,211. The company requires a minimum cash balance of $1,200 and u
    5·1 answer
  • To pay for her college education, Gina is saving $2,000 at the beginning of each year for the next eight years in a bank account
    14·1 answer
  • 2. Identify the type of scale of measurement (nominal, ordinal, interval or ratio) appropriate for each of the following types o
    12·1 answer
  • Pharoah Company purchased machinery on January 1 at a list price of $270000, with credit terms 2/10, n/30. Payment was made with
    10·1 answer
  • What should you do if a package is stolen from your doorstep?
    13·2 answers
  • Suppose the equilibrium real federal funds rate is 3 percent, the target rate of inflation is 3 percent, the current inflation r
    5·1 answer
  • 1. Briefly summarize the actions a firm can take to enhance the ethical behavior of its purchasing
    15·1 answer
  • If $1,000 of additional spending occurs and the marginal propensity to consume is 0.8, the total effect on the economy is an inc
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!