If the price of good X decreases and nothing else in the economic environment changes, what...

If the price of good X decreases and nothing else in the economic environment changes, what will most likely happen to the quantity demanded? (Multiple Choice)
1. The most likely result is that the quantity demanded of X will decrease.
2. If the demand function is Q = 25P-1 consumer expenditure and quantity demanded will be unchanged.
3. In the rare circumstance that the good is a Giffin good, the quantity demanded will increase.
4. Total consumer expenditure on good X will increase.0
5. None of the above.

Expert Solution

Rahul Sunny answered 6 months ago

If nothing else changes, an increase in interest rates will __________. Select an answer and submit....

If nothing else changes, an increase in interest rates will __________. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. A raise investment spending because it raises the expected returns B lower investment spending because it raises the opportunity cost of funds C lower consumption spending because it reallocates funds toward investment D have no effect on aggregate expenditures Even though I lost my job, causing my income to drop significantly, I...

9. If the Price of a related good A changes, then for good B stay on...

9. If the Price of a related good A changes, then for good B stay on the same demand curve, and move along it, as opposed to shifting to a new demand curve. True or False 10.If the Income Elasticity of deamnd for a good is negative, we can say that the good is normal good. True or False 11. Own price elasticity of demand is always negative, because of the law of demand. True or False 12. A firm...

It is generally true that when the price of a good is increased (all else equal)...

It is generally true that when the price of a good is increased (all else equal) the quantity demanded of that good will decline and the revenue from the sales of the good will also decline. There are exceptions, however, where price increases result in a reduction in the quantity demanded but revenue increases. Explain in detail the types of situations in which the exceptions occur. Define all the relevant terms

Changes in variables other than the price of a good, such as income or the price...

Changes in variables other than the price of a good, such as income or the price of another good lead to a change in demand. This corresponds to a shift of the entire demand curve. Critically analyze the law of demand and identify factors that cause demand to shift to the above situation (through diagram)

Assume the price of X increases/decreases. Graph the outcomes in the following cases: A. X and...

Assume the price of X increases/decreases. Graph the outcomes in the following cases: A. X and Y are substitutes. B. X and Y are complements. C. X and Y are neither substitutes nor complements.

1) when the price of a compliment (cream) decreases, the demand for the related good (coffee)...

1) when the price of a compliment (cream) decreases, the demand for the related good (coffee) A) will shift inward B) will fall C) will shift outward D) remains constant 2) other things being equal, an increase in wages paid to workers in firms making digital devices will cause A) the supply of digital devices to decrease B) the quantity of digital devices supplied to decrease C) the demand for digital devices to decrease D) the quantity of digital devices...

Price elasticity of demand measures consumers’ responsiveness to changes in the price of a good. There...

Price elasticity of demand measures consumers’ responsiveness to changes in the price of a good. There are a number of variables that affect consumers’ decisions, among them the following: The availability of substitutes The specific nature of the good The part of income spent on the good The time consumers have to buy the good Please draw on your experiences as a consumer and your Unit 2 readings to address the following 4 topics. Make sure you use economic concepts...

When the price of good x increases by 2 and the price of good y increases...

When the price of good x increases by 2 and the price of good y increases by 3, what happens to the slope of the budget constraint (does it get steeper/flatter/stay the same)? Please show your work.

Economic The Market: Laptops. The Event: The price of copper, an input into making laptops, decreases....

Economic The Market: Laptops. The Event: The price of copper, an input into making laptops, decreases. Simultaneously, the price of tablets (a substitute for laptops) decreases. Given the above information, answer the following questions: what do you expect to have happened to the supply of laptops? Options: shift right (increase), shift left (increase), no shift, shift right (decrease), shift left (decrease). If the supply curve for laptops shifted, what is the best reason for the shift? Options: lower input costs,...

In the first decade of this century, the global economic environment has seen tremendous changes. On...

In the first decade of this century, the global economic environment has seen tremendous changes. On the local and international scales, the fact that ‘cultural environment’ is one of the most important factors affecting organizations raises the significance of the management of cultural differences. It is crucial for businesses to understand these differences and find ways to hurdle the barriers these differences present in a socially responsible manner. TASK: Select any organization of your choice operating in at least two...

Question