Assume in a simple example that a change occurs in an economy that produces “Good X”...

Assume in a simple example that a change occurs in an economy that produces “Good X” and that there is an increase in the technology used to produce “Good X”. Assume that this is a competitive market, what will happen to the equilibrium price and quantity of “Good X”? Use supply and demand analysis to demonstrate your answer and be sure to provide the rationale behind what is happening and also discuss any interesting observations or outcomes. Finally, please cite an example from the news of a current event in real life that relates to the economic change affecting “Good X” above, and be sure to explain why it relates. (Note: The magnitude of any supply and/or demand shifts in this example are not specified; you may want to consider the magnitude of any shifts in your analysis).

Expert Solution

Rahul Sunny answered 1 year ago

Assume in a simple example that something occurs in an economy which produces “Good X” that...

Assume in a simple example that something occurs in an economy which produces “Good X” that changes consumer preferences. This will decrease consumer preferences for “Good X” in the economy. Assume that this is a competitive market and that “Good X” is a normal good, what will happen to the equilibrium price and quantity of “Good X”? Use supply and demand analysis to demonstrate your answer and be sure to provide the rationale behind what is happening and also discuss...

consider a simple economy that produces only two products: A, B. GOOD A GOOD B Price...

consider a simple economy that produces only two products: A, B. GOOD A GOOD B Price Quantity Price Quantity 2015 20 500 30 500 2016 50 1000 40 500 2017 50 1000 50 1000 Compute nominal GDP, real GDP, and the GDP deflator for each year, using 2018 as the base year.

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1. Consider the production possibility frontier for a simple two-good (closed) economy. Quantities of good x produced are plotted on the horizontal axis. Quantities of good y produced are plotted on the vertical axis. Suppose that the production of both x and y depends only on labor input and that the production functions for these goods are: x = f(lx) = lx and y = f(ly) = ly. Total labor supply is limited by: lx + ly = 100. The...

Assume a simple economy that produces only 3 goods. In the base year: 4 units of...

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8. A.) Illustrate the impact of a change that occurs in an economy when institutions become...

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Suppose that a simple economy produces only nachos, tacos, tortilla chips and beer. Assume all tortilla chips...

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Suppose that the rate of change of the price "x " of a good increases in...

Suppose that the rate of change of the price "x " of a good increases in the time at a constant ratio "c" as a result of inflation constant, at the same time falls proportionally to the difference between supply "y" at time "t" and some equilibrium supply "y0", is say x´ (t) = c - a (y - y0). It is also assumed that the exchange rate of the offer is proportional to the difference between the price and...

Consider an economy where an agent produces a consumption good with labor.

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Assume good x is Bitcoins (BTC) and good y is Dollars ($). The price of a...

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A very simple economy produces three goods: movies, burgers, and bikes.

able 19-17 2013 2018ProductQuantityPriceQuantityPriceMovies 20 $6.00 30 $7.00Burgers 100 2.00 90 2.50Bikes 3 1,000.00 6 1,100.00A very simple economy produces three goods: movies, burgers, and bikes. The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above.Refer to Table 19-17. What is real GDP in 2018, using 2013 as the base year?

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