Quiz econ

When be light upon, the supply curve increases or releases to the right. Since flips in producer costs is not a regard factor, there would be no impact on subscribe to. Points Received 10 of 10 Comments inquiry 2. capitulum (TCO A) Ceteris paribus, Brand A Plain tater chips and Brand B Plain potato chips ar substitutes in consumption. The impairment of Brand A Plain potato chips increases. (4 pts. ) a. What happens to the pack for Brand B Plain potato chips? (6 pts. ) b. What happens to the rent for Brand A Plain potato chips? a) As expense of A emissions use up for A falls so that demand for B rises.The demand curve for B shifts to the right b)As determine of A rises, demand for A falls receivable to law of demand. The demand curve moves along the upward direction. Instructor rendering a. When the price of a substitute strong rises, the demand for the other good increases. expense of Brand A rises demand for Brand B increases. b. This tests your superpower to distinguish between a change in demand and a change in total demanded. When the price of Brand A rises on that point IS NO EFFECT ON THE DEMAND for Brand A potato chips. Remember that the Price of the good itself is NOT a Determinant of conduct for that good.Points Received 6 of 10 Comments In (b) when the price ofa good changes that merely affects total demanded. The demand for Brand A remains unchanged (no shift of the demand curve). See instructor explanation, Chapter 3, and the tutorial in week 1 on the difference between a change in demand and a change in quantity demanded. When you say there is a change in demand you ar saying that something other than price has SHIFTED the demand curve. movement 3. Question SA 3. (TCO A) The name of wheat berry producers flows. (4 pts. ) What happens to the supply of wheat? 6 pts. ) What happens to the demand for wheat? 100 20 300 ) It the get along ot wheat producers decrease supply tor wheat leave decrease and prices capacity go up. b) The demand for wheat will stay the same. Instructor explanation Instructor account The supply of wheat would decrease, or shift to the left. The form of suppliers is obviously a supply factor, so the less suppliers thare are, the smaller would be the supply. The demand for wheat remains the same as before because the number of suppliers is a supply factor, not a demand factor.Points Received 10 of 10 Question 4. Question (TCO A) A market is in counterbalance with equilibrium measuring rod of milliequivalent and equilibrium nce of MEP. (2 pts. ) a. What happens to Market Equilibrium Quantity (MEQ) if there is an increase in Demand? (4 pts. ) b. What happens to Market Equilibrium Price (MEP) if tack on decreases as Demand increases? (4 pts. ) c. What happens to Market Equilibrium Quantity (MEQ) after there has been an increase in Supply followed by a decrease in Demand which is followed by another increase in Supply? ) If their is an increase in demand then the pric e will rise because their is a move from Dl to D2 b)When supply decreases prices go down and demand increases until their is a new equilibrium. c)an increase in supply will level rices and move sl tos2, a decrease in demand will put down prices, following an increase in supply will lower prices, boilersuit the price will go down. Instructor Explanation a. MEQ increases b. MEP increases c. MEQ is indeterminate as the shifts force Quantity in different directions and the sizes of the shifts are not given.Points Received O of 10 Comments enthral see instructor explanations for all 3 parts here. You have not answered the questions asked. Question 5. Question The following table shows part of the demand function for tickets to an outdoor pass concert by a popular singing group pnce (P) quantity (Q) 5. 180 (2 pts. ) What is demand walkover in the $10- $20 price range? Is demand visco resilient, nonresilient, or of unitary elasticity? Calculate the take to be and show all of your wo rk. Be sure to use the midpoint equality used to determine elasticity. b. (4 pts. Assume demand elasticity is 1. 3 in the $35 $50 price range. In this range of demand, by what constituent would quantity demanded change if price increases by 9 percent? direct your detailed calculations. (4 pts. ) What is the effect of a price decline from $35 to $20 on total revenue for the event? Does total revenue (TR) increase, decrease, or remain the same? By how much? Show your detailed calculations. a) cc/300 = . 6667 10-20/20=. 5, . 6667/-. 5=1. 3334, demand elastic b)38. 1 20*300 =6000 Total revenue decreases by 300 Instructor Explanation a.Using the recommended mid-point formula for calculating elasticity one mint see that demand is slenderly inelastic in this range since the calculated elasticity value equals 0. 746 which is slightly less than 1. 0. Ed change in Q / (sum of Q/2) / change P/ (sum ofP/2 = (500- 300)/800/2 / (20 -10)30/2 = . 50/-. 67 = 1. 7461, rounding.. b. For this q uestion the point elasticity formula is best since it contains all of the mportant elements in the one formula. Since Ed = %change Q / %change P, according to the point elasticity formula rearranging the equation and solving for %change Q, gives us %change Q = (%change P)(Ed).Thus, in this case, %change Q (9) (1. 3) = a decline of 11. 7 percent. c. This question can be answered in 2 ways (1) You could calculate the elasticity in the $35 $20 range. This is (300- 180) / 480/2 / (20- 35) / 85/2 = 120 / 240 / 15 / 43 = 0. 50 / 0. 55 = -0. 909, rounding. Since we have slightly inelastic demand in this range we know that lowering price will esult in an DECREASE in total revenue or (2), Simply calculate the total revenue at the two prices at $20 total revenue is $20 x 300 = $6,000, and at $35, total revenue $35 x 180 = $6?00. o total revenue DECREASES when the pnce lowered to $20 from $35. Points Received 6 of 10 Comments Please see instructor explanations for the 1st and 2nd parts here. Question 6. Question (TCO B) Use a supposed(p) example to illustrate whether you gybe or disagree with the following statement Unemployment will go up more if the demand for labor is inelastic because the demand tor labor will decrease more when you nave inelastic emand than if demand were elastic. Explain why, using hypothetical numbers to illustrate your case.Disagree, Unemployment will not go up if the demand for labor is inelastic. demand for labor would be inelastic when the change in demand for labor is less than or equal to 1, and it will not have an impact on unemployment when the change in labor is elastic it is greater than or equal to 1 so it will have an impact on unemployment. Instructor Explanation The unemployment impact would be greater in the case of elastic demand. Starting with an equilibrium quantity f labor equal to, say, 100 units, an increase in the minimum occupy would reduce the quantity of labor demanded.Let us say that demand is inelastic and that Ed = 0. 5. Suppose the minimum wage increases by 10 percent. The quantity of labor demanded would fall by = 5 percent. Alternatively if demand was elastic such that Ed= 2 (say), then the quantity of labor demanded would fall by = 20 percent. Clearly, unemployment is impacted far more in the latter(prenominal) case (elastic demand) than it is in the former (inelastic demand). Points Received 5 of 10 Comments Please see instructor explanation regarding the reason why the tatement is false, and the hypothetical example. Question