All else the same, when the price of apples rises, apple producers will have an incentive...

All else the same, when the price of apples rises, apple producers will have an incentive to plant more apple trees.

True or False?

Expert Solution

All else the same, when the price of apples rises, apple producers will have an incentive to plant more apple trees. It is true.

Because when price of apple rises then the apple producer will always have incentive to produce more and more apple and sell it. So to produce more and more apple producer want to plant more and more apple trees. Because this plantation of apple trees will give him an opportunity to produce more apple. Though there is already apple trees. If the price rises the producer of apple will always get incentive. Though the production will not come immediately but there can be a scope of more production in near future. If the price rise continues then the producer can get. So there will be an incentive to plant more apple trees though the outcome in terms of production will not come quickly. There is always a lag of plantation of trees and its production. But producer get incentive to produce more on the expection that he or she will get higher price for the product.

Rahul Sunny answered 1 year ago

When the price of gasoline rises by 40 percent, but your salary remains the same, it...

When the price of gasoline rises by 40 percent, but your salary remains the same, it is an example of a decline in your: standard of living purchasing power GDP index cost of living index gross economic income

All else the same, the price sensitivity of a larger coupon bond to change in interest...

All else the same, the price sensitivity of a larger coupon bond to change in interest rate is ___ that of a smaller coupon bond. A. either greater than or the same as B. smaller than C. the same as D. greater than

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.********

all else the same, the larger the bond's coupon, the lower its price. true or false

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

Market Research: You have an apple orchard. You let people pick their own apples. When you...

Market Research: You have an apple orchard. You let people pick their own apples. When you let people pick a small bag for $6, there were 6,316 small bags sold. You do some market research and find that a $0.25 increase in price means 235 fewer small bags of apples sold. Recall that revenue is quantity sold X Price per quantity. If we let x be the number of $0.25 increases or decreases from $6 and R be revenue, then...

a. You have 2 goods, apples, and bananas, that you are buying. The price of apples...

a. You have 2 goods, apples, and bananas, that you are buying. The price of apples is $2.00 each and the price of bananas is $1.00 each. You have $10.00 to spend. Draw a budget line for these two products. Fill the table below to help you make this graph. b. Can you afford 4 apples and 4 bananas? Show why or why not. Apples Bananas Cost of Apples Cost of Bananas Total Cost 0 10 0 10 $ 10.00...

If firms increase the hourly wage paid to all workers then (all else the same) this...

If firms increase the hourly wage paid to all workers then (all else the same) this will tend to: Group of answer choices increase the price of the goods sold by the firms because of a decrease in supply. increase the price of the goods sold by the firms because of an increase in supply. decrease the price of the goods sold by the firms because of a decrease in supply. decrease the price of the goods sold by the...

2. “A price is a signal wrapped in an incentive.” This statement encapsulates all of price...

2. “A price is a signal wrapped in an incentive.” This statement encapsulates all of price theory. Explain what it means.

Assume that the market for patio chairs is a monopoly and charges each consumer the same price for patio chairs. producers have the same cost situation:

Assume that the market for patio chairs is a monopoly and charges each consumer the same price for patio chairs. producers have the same cost situation:• The labor and raw material expense of producing additional units of patio chairs for every factory is constant at $10 and equal to average total costs. Assume this is the long run, so fixed costs are equal to zero. Per-period market demand for patio chairs is stable, and described by the data in the...

Question