Suppose Teresa earns $875 per week working as a corporate attorney for Rowan and Martin Associates. She uses $9 to order a mojito cocktail at LittleHavana. Little Havana pays Sam $350 per week to wait tables. Sam uses $200 to purchase legal service from Rowan and Martin Associates.Identify whether each of the following events in this scenario occurs in the factor market or the product market.EventFactor MarketProduct MarketSam spends $200 to purchase legal service from Rowan and Martin Associates.Teresa earns $875 per week working for Rowan and Martin Associates.Teresa spends $9 to order a mojito cocktail.Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all thatаpply.O Teresa's laborO The $350 per week Sam earns working for Little HavanaO The mojito Teresa receivesO The $200 Sam spends to purchase legal service from Rowan and Martin Associates

In a 2-sector model, firms earn revenue when Households buy Goods and Services in product market,…

Answered: torney for Rowan and Martin Associates.…

torney for Rowan and Martin Associates. She uses $9 to order a Sam uses $200 to purchase legal service from Rowan and Marti

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 4P

See similar textbooks

Similar questions

Based on this model, firms earn revenue when Suppose Teresa earns $750 per week working as a pilot for Wingies. She uses $10 to take a yoga class at Big Bend. Big Bend pays Sam $475 per week to instruct yoga. Sam uses $350 to purchase international flights from Wingles. Event purchase Identify whether each of the following events in this scenario occurs in the factor market or the product market. Sam earns $475 per week working for Big Bend. Teresa spends $10 to take a yoga class. Teresa earns $750 per week working for Wingies. Factor Market Product Market in product markets. The $475 per week Sam earns working for Big Bend O Teresa's labor Which of the elements of this scenario represent a flow from a household to a firm? This could be a flow of dollars, inputs, or outputs. Check all that apply. The yoga class Teresa receives The $350 Sam spends to purchase international flights from Wingies
Suppose Amy earns $575 per week working as an interior designer for Ourhouse. She uses $10 to take a yoga class at Big Bend. Big Bend pays Van $400 per week to instruct yoga. Van uses $150 to purchase furniture from Ourhouse. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Factor Market Product Market Event Van earns $400 per week working for Big Bend. Amy earns $575 per week working for Ourhouse. Amy spends $10 to take a yoga class. Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. ✔The $400 per week Van earns working for Big Bend The $150 Van spends to purchase furniture from Ourhouse Amy's labor O The yoga class Amy receives
1. The economy's income and expenditure The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Firms Markets for Goods and Services Markets for Factors of Production Based on this model, households earn income when Households purchase in markets for factors of production. Suppose Megan earns $575 per week working as a flight attendant for Flyaway Airlines, She uses $9 to order a mojito cocktail at Little Havana. Little
5. The circular-flow model The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Markets for Goods and Services Firms Households Markets for Factors of Production Based on this model, households earn income when households v purchase resources in markets for factors of production. Suppose Frances earns $625 per week working as an analyst for A-Plus Accountants. She uses $9 to have breakfast at Dinah's Diner. Dinah's Diner pays Dmitri $250 per week to work as a short-order cook. Dmitri uses $275 to purchase tax services from A-Plus ACcountants.
The figure depicts the market for shoes. Suppose that a less expensive material for making shoes is developed. a. What effect will this event have on supply and demand in the shoe market? Demonstrate your answer graphically. Instructions: Use the tool provided 'New line' to draw either a new demand or supply curve that reflects the market effect of this event. Plot only the endpoints of the line. Market for Shoes Tools New line Q Quantity of shoes b. If a less expensive material is developed, the (Click to select) (Click to select) v v will This will cause the equilibrium price to (Click to select) v and the equilibrium quantity to (Click to select) v Price ($)
Suppose Frances earns $500 per week working as a doctor for the Medical Clinic. She uses $9 to have breakfast at Dinah's Diner. Dinah's Diner pays Dmitri $350 per week to work as a short-order cook. Dmitri uses $250 to purchase medical services from the Medical Clinic. Identify whether each of the following events in this scenario occurs in the factor markets or the product markets. Factor Markets Product Markets Event Dmitri spends $250 to purchase medical services from the Medical Clinic. Frances earns $500 per week working for the Medical Clinic. Frances spends $9 to have breakfast. Which of the elements of this scenario represent a flow from a household to a business? This could be a flow of dollars, inputs, or outputs. Check all that apply. The breakfast Frances receives The $350 per week Dmitri earns working for Dinah's Diner Frances's labor
Consider the market for lattes. In the figure, let EO be the initial equilibrium. What happens to the market for of lattes if steamed milk, which is used to make lattes is deemed to make people gassy, and at the same time, coffee shops begin using a machine that reduces the amount of labor necessary to produce lattes? Point your mouse and click on the new equilibrium intersection, the equilibrium price (on the price axis) and the equilibrium quantity (on the quantity axis) in the left and right panels separately. NOTE: You are essentially answering this question twice. Note that the supply changes more than demand on the left hand graph, and that demand changes more than supply on the right hand graph. At the new equilibrium, notice how the magnitude of the supply vs. demand changes affect the change to equilibrium price and quantity. Price % Quantity P₂ Quantity Undo Delete selected Remove All
A new technology reduces the time it takes to make a pair of khaki pants. The price of the cloth used to make khaki pants falls. The wage rate paid to garment workers increases. The price of jeans increases. People's incomes increase. Assignment Draw a demand-supply graph and label the axes with the price and quantity of khaki pants. Create one graph that shows each of the demand-supply curves for the five scenarios listed Above Use five different colors to represent each of the five scenarios. Clearly identify your finished graph.
The following graph shows the supply curve for a group of sellers in the U.S. market for smartphones (orange line). Each seller has only one smartphone to sell. The market price of a smartphone is shown by the black horizontal line at $175. Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Dmitri, green (triangle symbols) for Frances, purple (diamond symbols) for Jake, tan (dash symbols) for Latasha, and orange (square symbols) for Nick. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a smartphone at a market price of $175. (Note: If a person will not sell a smartphone at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) Based on the information on the preceding graph, you can tell that____will sell smartphones at the…
Victoria is the food basket for Australia. In 2017, Victoria witnessed a severe drought that is reported to be the worst in many years. Assume all factors constant meaning that there is no external influence in the market except the drought. Use the demand and supply model figure below to explain the impact of the drought on food supply to Northern Territory, a state that relies on food supplies from Victoria.
CENGAGE MINDTAP Assignment 5 (Ch 06) 2. Price controls in the Florida orange market The following graph shows the antal market for Florida oranges, which are sold in units of 10-pound boxes Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Florida Oranges Price 15 tupply (Dollars per bov) 000 Quantity Demanded Pons of bees) Quantity Supplied (Mions of boxes) 210 Demand D00 100 10 200 200 300 350 400 450 500 QUANTITY M of bove) AM 11 S MacBook Air. CENGAGE MINDIAP Assignment 5 (Ch 05) 250 million boxes. In this market, the equilibrium price is $25 per box, and the equilibrium quantity of oranges is For each of the prices Usted in the following table, determine the quantity of oranges demanded, the quantity of oranges supplied, and the direction of…
Sven makes rocking chairs for a cost of $75 each, and he sells the rocking chairs for a market price of $130 each. Deidre is willing to pay $200 for a rocking chair. However, the government believes that rocking chair manufacturers should receive more money, and set the lowest legal price rocking chairs can be sold for at $250. At the market price, Sven is willing to sell a rocking chair to Deidre, and Deidre is willing to buy a rocking chair from Sven. Unfortunately, with the new legal minimum, Sven and Deidre cannot trade with one another, and miss out on additional gains from trade. Which of the effects of a price control best fits the scenario above? O Deadweight Loss Reduction in Quality O Misallocation of Resources Wasteful Increase in Quality