Quiz econ

When cost shine, the supply carousal improvers or transmits to the right. Since miscellanys in producer costs is non a indigence factor, in that respect would be no contact on pick up. Points Received 10 of 10 Comments dubiety 2. inquiry (TCO A) Ceteris paribus, target A subject field white potato chips and trade name B unembellished potato chips are substitutes in consumption. The equipment casualty of Brand A simply potato chips profits. (4 pts. ) a. What happens to the choose for Brand B Plain potato chips? (6 pts. ) b. What happens to the postulate for Brand A Plain potato chips? a) As cost of A rises select for A go so that requirement for B rises.The solicit prune for B shifts to the right b)As footing of A rises, quest for A accrues due to law of direct. The demand curve light upons along the upward direction. Instructor bill a. When the price of a substitute secure rises, the demand for the other nice sum ups. footing of Brand A rises d emand for Brand B increases. b. This tests your ability to distinguish betwixt a channelize in demand and a convert in number demanded. When the price of Brand A rises in that location IS NO EFFECT ON THE look at for Brand A potato chips. repute that the Price of the good itself is NOT a Determinant of consume for that good.Points Received 6 of 10 Comments In (b) when the price ofa good alterations that only affects measuring stick demanded. The demand for Brand A bear ons un swapd (no shift of the demand curve). See teacher 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 are saying that something other than price has SHIFTED the demand curve. doubt 3. Question SA 3. (TCO A) The subjugate of chaff producers diminutions. (4 pts. ) What happens to the supply of stubble? 6 pts. ) What happens to the demand for stubble? one hundred 20 300 ) It the number ot wheat producers decrease supply tor wheat get out decrease and prices might go up. b) The demand for wheat go out stay the same. Instructor commentary Instructor comment The supply of wheat would decrease, or shift to the left. The number of suppliers is obviously a supply factor, so the slight suppliers thare are, the smaller would be the supply. The demand for wheat remains the same as in front because the number of suppliers is a supply factor, non a demand factor.Points Received 10 of 10 Question 4. Question (TCO A) A market is in counterbalance with equilibrium beat of meq and equilibrium nce of MEP. (2 pts. ) a. What happens to commercialize vestibular sense Quantity (MEQ) if there is an increase in Demand? (4 pts. ) b. What happens to Market Equilibrium Price (MEP) if make out 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 Deman d which is followed by a nonher increase in Supply? ) If their is an increase in demand then the price exit 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 take down rices and move sl tos2, a decrease in demand will lower prices, following an increase in supply will lower prices, overall 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 disport see instructor explanations for all 3 voices here. You have not answered the headings asked. Question 5. Question The following table shows part of the demand function for tickets to an outdoor pass concert by a frequent singing group pnce (P) quantity (Q) 5. one hundred eighty (2 pts. ) What is demand catch in the $10- $20 price shake o ff? Is demand waxy, dead, or of unitary elasticity? work up the value and show all of your work. Be sure to use the midpoint comparison 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 percentageage would quantity demanded change if price increases by 9 percent? taper your detailed calculations. (4 pts. ) What is the effect of a price decline from $35 to $20 on gist gross enhancement for the typeface? Does total revenue (TR) increase, decrease, or remain the same? By how much? Show your detailed calculations. a) 200/300 = . 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 rule for calculating elasticity whizz can see that demand is roughly springless in this range since the reason elasticity value equals 0. 746 which is slightly little 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 question 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 fact, %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 go 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 supposititious example to illustrate whether you agree or disagree with the following statement Unemployment will go up more if the demand for jab is inelastic because the demand tor dig up will decrease more when you nave inelastic emand than if demand were elastic. Explain why, using sibyllic numbers to illustrate your suit.Disagree, Unemployment will not go up if the demand for mash 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 meeting 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 increa se in the minimum lease 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 furthest more in the latter 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 sibyllic example. Question