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Terms in this set (24)Assume that the price in a market is currently below the equilibrium price. Explain exactly why that situation will change by putting the steps in the correct order. B Assume that tastes change so that tennis is no longer as desirable to
play as it is now. What would happen to the market for tennis balls? b Okra
was $13.00 per bushel in 2015, and 1.5 million bushels were sold. Okra was $14.00 per bushel in 2016, and 2.0 million bushels were sold. "If in both cases the okra market was in equilibrium, this must be an example of an exception to the law of demand." b An increase in the price of the good A movement along a demand curve¸ no change in demand An increase in income for a normal good Shift the demand curve to the right and an increase in demand A decrease in the price of a substitute good Shift the demand curve to the left and a decrease in demand Expectations of falling income in the near future Shift the demand curve to the left and a decrease in demand. (If the good is normal.) Expectations of rising prices in the near future Shift the demand curve to the right and an increase in demand now. Since 1950, the labor force participation rate of women with young children has been increasing dramatically. In accordance with this trend,
one would predict that there has been _______________. a "Falling oil prices have caused a sharp decrease in the supply of oil." Speaking precisely, this quotation is
_______. d An increase in the prices
of inputs will cause the equilibrium price to ______________ and the equilibrium quantity to ______________. b New technology lowering the costs of production will cause the equilibrium price to ______________ and the equilibrium quantity to ______________. d An increase in the price of a substitute good will cause the equilibrium price of its substitute to ______________ and the equilibrium quantity to ______________. a A decrease in the
price of a complementary good will cause its complement's equilibrium price to ______________ and the equilibrium quantity to ______________. c If (1) the cost of manufacturing computers decreases and (2) at the same time the quality improves, making computers more useful for households, which of the following is
most likely to happen? b "The winds of the recent hurricanes in Florida are bringing significant
financial gain to California orange growers. Due to the extensive damage to the Florida orange crop, many oranges were destroyed. The ones remaining were just as good as the previous oranges. California oranges are commanding their highest prices ever." If Florida and California oranges are substitute goods, which of the following statements best explains the economics of the quotation? d "Many Coca-Cola bottlers increased the price of Coke because the price of corn syrup (an important ingredient in Coke production) has increased." Other things constant, this most recent change in the market for Coca-Cola can best be explained as which of the following? b If income decreases and, at the same time, a new technology is discovered that lowers the cost of producing the good, which of the following will happen? b Christmas card sales increase during the last three months of the year, and the sale of fresh strawberries in the North increase during the early summer months. However, the equilibrium price movement of these two
commodities is quite different during their peak sales seasons. Christmas cards increase in price when the equilibrium quantity increases, whereas strawberries decrease in price when the equilibrium quantity increases. Why does this difference occur? a Oil-based products are a significant part of the materials used to build sailboats. What is likely to happen in the market for new sailboats and in the market for sails, if the price of oil begins to rise? c Oprah Winfrey made comments
about the possibility of contracting mad-cow disease from eating beef. Some observers said that those comments had negative effects on the beef market. In the same period of time, changes in rate of production may have been the real culprit. If only Oprah's comments affected the market, then the equilibrium price would have ______________ and the equilibrium quantity would have ______________. a Oprah Winfrey made comments about the possibility of contracting mad-cow disease from eating beef. Some observers said that those comments had negative effects on the beef market. In the same period of time, changes in rate of production may have been the real culprit. If the "over-production" affected the market, then the equilibrium price would have ______________ and the equilibrium quantity would
have ______________. c Health insurance makes medical care more affordable for individuals. What will happen to the equilibrium price of medical care as a result of better health care coverage and why? d What would be the initial change in the market for beer if a city suddenly restricted the number of bar licenses they permitted? (Note: A bar requires a licenses to operate.) a Recommended textbook solutions Principles of Microeconomics7th EditionN. Gregory Mankiw 830 solutions Principles of Microeconomics8th EditionN. Gregory Mankiw 796 solutions Macroeconomics7th EditionN. Gregory Mankiw 213 solutions Microeconomics, Global Edition8th EditionDaniel Rubinfeld, Robert Pindyck 373 solutions Sets with similar termsMicroecon Ch. 322 terms kaynessa Microecon Chapter 4: The Market Forces of Supply a…41 terms adamsman Micro Chapter 4: The Market Forces of Supply and D…41 terms rallma Factors Shifting the Demand (D) and Supply (S) Cur…37 terms EJF2017 Sets found in the same folderEcon Final EOC83 terms mawebb425 ECON 101 Chapter 456 terms johansen_megan Chapter 4 (Exam 1)40 terms madisynwarrick Econ 2 top hat questions134 terms emma_burton33 Other sets by this creatorChapter 5: Developing Through the Life Span46 terms ph5 Chapter 4: Criminal Law - Substance and Procedure30 terms ph5 Chapter 2: The Nature and Extent of Crime29 terms ph5 Chapter 1: Crime and Criminal Justice29 terms ph5 Verified questions
ECONOMICS What has happened to the income share of the richest fifth of the U.S. population over the past 40 years? Verified answer
ECONOMICS What role do special economic zones play in China's transition to a free market economy? Verified answer
ECONOMICS Explain the relationship between the terms in each of these pairs. a. nominal GDP, real GDP b. gross national product, net national product c. personal income, disposable personal income Verified answer
ECONOMICS The Georgetown, South Carolina, Traffic Division reported 40 percent of high-speed chases involving automobiles result in a minor or major accident. During a month in which 50 high-speed chases occur, what is the probability that 25 or more will result in a minor or major accident? Verified answer Other Quizlet sets
ECON 30266 terms jake502dapore Econ Exam 120 terms jordan_adams90i ECON 300 4th test UL 201848 terms wgentr ECON CHAPTER 648 terms keaton_ling4 Related questionsQUESTION when a firm has total revenue greater than total cost... 5 answers QUESTION The figure shows the apartment rental market in Bigtown. If the Bigtown Housing Authority imposes a rent ceiling of $1,000 per month, the ceiling will 4 answers QUESTION Suppose a firm is collecting $1345 in total revenues and the total cost of its fixed factors of production rise from $200 to $300. One can speculate that the firm will: 5 answers QUESTION Incumbent firms (i.e., established firms) can present a credible threat of aggressive price cutting, and threaten other actions to discourage entry into their industry. Such threats create: 15 answers What happens to the equilibrium price when the price of a complementary good decreases?The prices of complementary or substitute goods also shift the demand curve. When the price of a good that complements a good decreases, then the quantity demanded of one increases and the demand for the other increases.
What happens to equilibrium when the price of a complementary good increases?Complementary Goods and Cross Elasticity of Demand
Complementary goods will have a negative cross elasticity of demand. If the price of one good increases, demand for both complementary goods will fall.
What will be the effect on equilibrium price and equilibrium quantity when price of complementary good increases?If market is in equilibrium and market demand as well as market supply for a commodity increase in the same proportion the price remains stable, there is no change in the equilibrium price but the equilibrium quantity will increase.
What happens to supply when price of complement decreases?The supply of a good increases if the price of one of its complements in production rises. The supply a good decreases if the price of one of its complements in production falls.
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A decrease in the price of a complementary good will cause its complement equilibrium price to
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