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.

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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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question 4 and 5 please
According to the graph, if price increases from $10 to $15, total revenue will Price $20 15 10 O 12 3 9 10 Quantity Select one: O a. increase by $5, so demand must be inelastic. Ob. decrease by $20, so demand must be elastic, C. increase by $20, so demand must be inelastic. d. decrease by $10, so demand must be elastic.
Which development would most likely cause the supply of a product to increase? O A. New technology allows the product to be made more quickly. O B. Companies expect the price of the product to fall significantly. O C. Fewer workers receive the education needed to create the product. D. Government regulations increash the cost of making the product.
QUESTION 2 This year Zara had a large increase in revenues after having a large sale. Which of the following is a possible explanation? O None of the suggested options O Supply was price elastic O Demand was price elastic O The demand curve shifted to the right Demand was price inelastic
Which of the following would not cause a change in supply? O a. A decrease in the number of firms in the industry. b. An increase in the price of the good. C. A technological advance. d. All of the other answers will cause supply to change. e. A decrease in wages of labor used in production.
As consumer incomes have increased in the United States since 1950, the real price of wheat (the price of wheat adjusted for inflation) has fallen and the quantity of wheat produced has increased. Which of the following explains these changes? O The income elasticity of demand for wheat is greater than +1.0 and the elasticity of supply of wheat is less than +1.0. O The income elasticity of demand for wheat is positive but less +1.0 and the producțivity of wheat farmers has increased. O Wheat is an inferior good and the productivity of wheat farmers has decreased. Government price support programs have decreased the price of wheat and increased the demand for wheat.
Suppose the cross elasticity of demand for two goods, X and Y, is positive. If the price of Y falls, then quantity demanded will.. O a. Rise for both goods. O b. Rise for X and fall for Y. O c. Remain the same for both goods. O d. Fall for X and rise for Y. O e. Fall for both goods.
Question 19 If the price elasticity of supply is 0.1, which of the following is correct when price increases by 5 percent, Qs will decrease by 0.1 percent when price increases by 5 percent, Qs will increase by 0.5 percent O when income increases by 10 percent, Qs will increase by 1 percent Owhen price decreases by 8 percent, Qs will increase by 6.4 percent « Previous No new data te
The following graph shows the demand for a good. PRICE (Delars per un QUANTITY (US) W Demand @
Sometimes, the law of demand fails to work. Such situation of failure of law of demand is known as O a. Law of supply O b. Assumptions of law of demand O c. Exceptions to law of demand O d. Determinants of demand
If the supply of and demand for a product increase at the same time, then equilibrium O quantity and equilibrium price must both decline. O quantity must decline, but equilibrium price may either rise, fall, or remain unchanged. O price must fall, but equilibrium quantity may either rise, fall, or remain unchanged. O quantity must increase, but equilibrium price may either rise, fall, or remain unchanged.
A huge Hypermarket in Salalah sells products based on three different price levels- extremely low, extremely high, and moderately priced. What can he expect about the demand for these products if the hypermarket gives a discount? O a. The demand for low-priced items will experience the biggest change O b. The demand for high priced items will experience the biggest change The demand for moderately-priced items will experience the lowest change O d. The demand for moderately priced items will experience the biggest change