Question

In: Economics

An increase in the price of oranges would lead to

An increase in the price of oranges would lead to

Solutions

Expert Solution

Price and quantity demanded has inverse relationship , if price rises quantity demanded decreases and if price fall quantity demanded increase .

In our case price of orange increase as a result quantity demanded for oranges decreases . And when price of own good changes there is movement along the demand curve.


Related Solutions

If demand for a product is​ inelastic, then an increase in price will lead to a...
If demand for a product is​ inelastic, then an increase in price will lead to a decrease in total expenditure . If demand for a product is​ elastic, then an increase in price will lead to a decrease in total expenditure
Suppose that the price of oranges and apples rises. What would you expect to happen to...
Suppose that the price of oranges and apples rises. What would you expect to happen to the market price and quantity of orange juice? (Hint: apple juice is a substitute) Correct answer: the equilibrium price would increase, but the impact on equilibrium quantity would be uncertain *******Draw the curves for each market and explain why this is the correct answer.********
what marketing activities would you focus on to increase the lead conversion to sales currently at...
what marketing activities would you focus on to increase the lead conversion to sales currently at 55% and why
An increase in total factor productivity will lead to which of the following? An increase in...
An increase in total factor productivity will lead to which of the following? An increase in the productivity of labor but not capital. A decrease in the productivity of capital, but not labor. An increase in the productivity of labor and capital. A decrease in the productivity of labor, but not capital.
Why would an increase in interest rates lead to problems in S&Ls? Use gap and duration...
Why would an increase in interest rates lead to problems in S&Ls? Use gap and duration analysis to explain your answer briefly. Regulators allowed S&Ls that were already insolvent to stay open and in addition deregulated the industry so these S&Ls could take on more risks. How would these policies affect moral hazard? Briefly explain your answer.
pharmacology question Explain briefly how an increase in systemic blood pressure would lead to a decrease...
pharmacology question Explain briefly how an increase in systemic blood pressure would lead to a decrease in renin release?
How much would Marlboro sales have had to increase in response to a price reduction to $2 for that price reduction to increase profit?
On Friday, April 2, 1993, executives at Phillip Morris made a bold move, announcing a reduction of approximately 20 percent in the price of Marlboros. The retail price dropped from $2.20 to $1.80 a pack. The announcement sent shock waves through the cigarette industry. The reaction in the stock market was swift and punishing: Phillip Morris’s stock price dropped 23 percent in a single day, erasing $13.4 billion in stockholder value. That day was immediately dubbed “Marlboro Friday.” In Application...
5) Suppose a consumer of oranges and tangerines is currently in equilibrium. If the price of...
5) Suppose a consumer of oranges and tangerines is currently in equilibrium. If the price of tangerines falls, the consumer will attempt to restore equilibrium by: A) buying more oranges B) buying fewer tangerines C )buying more tangerines D) A and B E) None of the above 6) Jasper LLC's total cost is $10500 and the average total cost is $17.50; how many units are they producing?_________ 7) When Jasper LLC produces Q=700, ATC=17.50; what is TC?____________ Refer to questions...
1. An increase in the price level and a reduction in output would result from
1. An increase in the price level and a reduction in output would result froma.a fall in stock prices.b.a decrease in the supply of an important resource.c.an increase in government expenditures.d.an increase in taxes.2. The interest-rate effecta.depends on the idea that decreases in interest rates increase the quantity of goods and services demanded.b.depends on the idea that decreases in interest rates decrease the quantity of goods and services demanded.c.is responsible for the downward slope of the money-demand curve.d.is the least...
How would the following changes in price affect total revenue? That is, would total revenue increase,...
How would the following changes in price affect total revenue? That is, would total revenue increase, decline, or remain unchanged? Price falls and demand is inelastic. Price rises and demand is elastic. Price rises and supply is elastic. Price rises and supply is inelastic. Price rises and demand is inelastic. Price falls and demand is elastic. Price falls and demand is of unit elasticity
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT