In the short-run if there is a surplus in the market for a product, the rationing function of price can be expected to cause   A) an increasing shift in the demand for the product.   B) a decreasing shift in the supply of the product.   C) an increase in the market price of the product.   D) a decrease in the market price of the product

There is a hypothetical market for bottled water. The market demand and supply are QD = 1150 – 100P and QS = -100 + 40OP. a) Find the equilibrium price and quantity.

You may have noticed that the market demand curve is always flatter than any individual demand curve. Is the market price elasticity of demand also always lower than the individual price elasticity of demand? The market price elasticity is not always lower because elasticity does not just depend on the slope but also the level of quantity demanded. The latter may be quite small for an individual. is always lower because the percentage change in price for the individual is larger than that for the market as a whole. is not always lower because the percentage change in price for the individual is smaller than that for the market as a whole. O is always lower because the slope of the market demand curve is flatter than any of the individual demand curves that compose it.

Which of the following is most likely to have a low price elasticity of demand? A good that is very expensive. A good with no close substitutes. A good that most people consider a luxury. All are equally likely to have a low price elasticity of demand.

The restaurant industry is highly competitive. The pandemic has likely reduced the demand for restaurant meals. It has also likely raised the fixed costs of a typical restaurant (because owners have needed to reconfigure seating and install new ventilation systems). a)What will these two developments do to the equilibrium price and quantity in the market for restaurant meals? b)What will these two developments do to the number of meals produced and the profits of a typical restaurant in the short run?

Take care of plagiarism.   1.A 10% increase in price that leads to a 12% decrease in the amount purchased indicates a price elasticity of more than 1 (in absolute value). True False   2. A 10% increase in price that leads to a 2% decrease in total expenditures (or total revenue) indicates a price elasticity of more than 1 (in absolute value). True False   3. If the percentage change in price is less than the resultant percentage change in quantity demanded, demand is__________ .(elastic/inelastic/unit elastic)

Q79 A reason why product X has a relatively high price elasticity of demand in the short run is that... a. There are many substitutes for product X in the short run. b. There are few substitutes for product X in the short run. c. The prices of substitute products are constant. d. The price of product X is too low. e. The share of income devoted to product X is low.

Suppose that the percentage change in supply is 15%, the price elasticity of supply is 3, and the percentage change in the equilibrium price is 3%. What is the price elasticity of demand? A) 3 B) 0 C) 1     D) 2   Suppose that the percentage change in supply is 25%, the price elasticity of demand is 1, and the percentage change in the equilibrium price is 5%. What is the price elasticity of supply? A) 2 B) 5 C) 4     D) 0   Suppose that the percentage change in demand is 16%, the price elasticity of demand is 1, and the percentage change in the equilibrium price is 4%. What is the price elasticity of supply? A) 2 B) 1 C) 3     D) 0

Use the figure below to answer the following question. Price 0 C A 50 1 2 Quantity 6⁰ An increase in supply would best be reflected by a change from A) supply curve B to supply curve C. B) supply curve B to supply curve A.

An increase in quantity demanded is caused by an increase in the price of a substitute of the product. an increase in consumers' income. a decrease in the price of the product. a shift in tastes and preferences.