By 2021, automobile market analysts expect that the demand for electric cars will increase as buyers become more attracted to cost-saving vehicles. However, the costs of producing electric cars may increase because of higher costs for inputs (e.g., machinery and labour costs elements). In your opinion, what will be the expected impact of these changes on the market equilibrium price and quantity for electric cars? Hint: Demand & Supply curves are normal in shape) O a. Unambiguously higher quantity, and equilibrium price may be higher or lower O b. Unambiguously higher price, and equilibrium quantity may be higher or lower O c. Unambiguously higher equilibrium price and quantity O d. We cannot form any unambiguous expectations for either price or quantity

By 2021, automobile market analysts expect that the demand for electric cars will increase as buyers become more attracted to cost-saving vehicles. However, the costs of producing electric cars may increase because of higher costs for inputs (e.g., machinery and labour costs elements). In your opinion, what will be the expected impact of these changes on the market equilibrium price and quantity for electric cars? Hint: Demand & Supply curves are normal in shape) O a. Unambiguously higher quantity, and equilibrium price may be higher or lower O b. Unambiguously higher price, and equilibrium quantity may be higher or lower O c. Unambiguously higher equilibrium price and quantity O d. We cannot form any unambiguous expectations for either price or quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose the supply curve for open-heart surgery is vertical at a hospital for heart conditions. If the demand for open-heart surgeries increases, what would happen to the equilibrium price of open-heart surgery O The equilibrium price will increase due to an increase in quantity demanded O The equilibrium price will decrease due to a decrease in supply and fixed demand O The equilibrium price will increase due to an increase in demand and fixed supply O The equilibrium price will decrease due to an increase in supply and fixed demand
The following graph plots a supply curve for some hypothetical good. PRICE (Delar per un QUANTITY (UN) Supply For each of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic Region Elastic Inelastic Between X and Y O O Between V and W O
QUESTION 1 When production of a good can be expanded without significantly increasing the overall demand for its inputs: O a.supply for this good will tend to be more inelastic. O b.supply for this good will tend to be more elastic. O c. price for the good will be constant. O d. the elasticity of supply of the product will equal the elasticity of supply of the inputs.
Question 47 How does a lower price alleviate the problem of excess supply? O A lower price increases the number of potential sellers and the number of potential buyers. A lower price decreases the number of potential sellers and the number of potential buyers. O A lower price increases the number of potential sellers and decreases the number of potential buyers. A lower price decreases the number of potential sellers and increases the number of potential buyers.
Consider the market for chocolate chip cookies where the supply is very price elastic which means that Oa 10% percentage increase in price would lead to a greater percentage increase in quantity supplied Oa 15% decrease in price would lead to a smaller percentage increase in quantity supplied Oa 20% increase in price would lead to a smaller percentage decrease in quantity supplied of chocolate chip cookies Oa 15% decrease in price would lead to no percentage change in quantity supplied In the event of a decrease in demand, what is the likely change in market equilibrium? Oa large decrease in price and in quantity Oa large decrease in price and small decrease in quantity Oa small decrease in price and large decrease in quantity Oa small decrease in price and quantity
Question: The supply and demand for 9-volt batteries are given by QD = 230 - 10P and QS = 30P-10, where P is the price per four-pack and Q measures the number of four-packs. a. Wh... The supply and demand for 9-volt batteries are given by QD=230-10P and QS = 30P-10, where P is the price per four-pack and Q measures the number of four-packs. a. What are the levels of consumer and producer surplus at the equilibrium price? b. Suppose that a hurricane causes widespread blackouts, shifting the demand curve for 9-volt batteries outward, with the new demand curve equal to QD=690-10P. If the government sets a price ceiling equal to the pre-hurricane price (the old equilibrium price), what is the level of consumer surplus? c. If the government did not impose the price ceiling, what would consumer surplus equal? Are consumers better off with the price ceiling?
Suppose that the incomes of buyers in a particular market for a normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market? Select one: O a. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. cross out O b. The equilibrium price would decrease, but the impact on the amount sold in the market would be ambiguous. cross out cross out O c. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. cross out O d. The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous.
Air fares are generally lower on Tuesdays and Wednesdays each week. What is a likely explanation for this occurrence? O Supply is relatively variable, and lower demand on these days leads to a lower equilibrium price. O Demand is relatively variable, and lower supply leads to a lower equilibrium price. Lower levels of both supply and demand on these days lead to a lower equilibrium price. Supply is relatively fixed, and lower demand on these days leads to a lower equilibrium price. Demand is relatively fixed, and lower supply leads to a lower equilibrium price. OO
Gasoline prices have been and will continue to be a major issue for the economy. From the start of the Covid-19 pandemic up to the present day, gasoline prices have been in the news. ---What has happened to the price of gasoline over the past 12 months? Be specific and include actual prices in your answer. ---Discuss the recent changes in price from a supply and demand standpoint. Have the price changes been due to a change in supply, a change in demand, or both? Explain your answer. ---How did Covid-19 affected the market for gasoline? Which of the main influences of supply and demand do you think were responsible for the price changes? (See textbook pages 90-91 and 97-98.) Be specific and explain why and how the "main influences" you chose had an impact on the gasoline market.
Which of the following pair of events leads to a DEFINITE decrease in the price of baby food? * An increase in the birth rate and a decrease in wages for workers in the baby food industry. O An increase in the birth rate and an increase in regulations for baby food production. O An increase in the birth rate and a decrease in regulations for baby food production. A decrease in the birth rate and a decrease in wages for workers in the baby food industry. A decrease in the birth rate and an increase in wages for workers in the baby food industry.
BB Hypermarket reduces the price of salt by 10% which results in zero (0) change in demand, the demand of salt is: O a. Unitary elastic demand O b. Perfectly elastic demand O c. Elastic demand O d. Perfectly inelastic demand Why principles of microeconomics are called as Price theory? O a. Microeconomic principles are required for determining output prices O b. Microeconomic principles are required for determining input prices O c. Microeconomic principles are required for determining the prices of inputs and output O d. Microeconomic principles are required for understanding the types of market structure
Suppose an economic boom causes incomes to increase and, at the same time, drives up wages for the sales representatives who work for cell phone companies. Assume that smartphones are a normal good. This will cause the: O price of cell phones and the equilibrium quantity to rise. O price of cell phones to rise, but the change in the equilibrium quantity is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply. O price of cell phones and the equilibrium quantity to fall. O quantity of cell phones to rise, but the change in the equilibrium price is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply.