Question

In: Economics

1. Which Figure(s) illustrates a decrease in the price of a substitute in production?


and and supply and S1. Use these figures to answer the following questions (1 mark each) Figure 1 Figure 2 2 S1 S. Price Pric

Quantity Quantity Figure 3 Figure 4 ST Sy S2 Price Price •D1 D1 D2 Quantity Quantity


 1. Which Figure(s) illustrates a decrease in the price of a substitute in production?

 2. Which Figure(s) illustrates the effect of a natural disaster?

 3. Which Figure(s) illustrates an increase in expected future product prices?

 4. Which Figure(s) illustrates a decrease in the price of a substitute in consumption?

 5. Which Figure(s) illustrates a decrease in the preference for a good?


Solutions

Expert Solution

1 - Figure 3 illustrates this situation.

Due to decrease in price of substitute , its production will decrease. Hence , the production of the main good will rise as a result and supply curve will shift right.

2 - Figure 1

This is because as a result of natural disaster , the resources will be destroyed. Supply will decrease and curve will shift to left.

3 - Figure 2

The increase in the future expected price will increase the current demand for the product. Hence this will shift the demand curve to the right.

4 - Figure 4

Due to decrease in price of substitute good , the demand for the substitute good will rise. As a result , the demand for the other good will fall and demand curve will shift to left as shown

5 - Figure 4

Due to the decrease in preference , the demand for the product will decrease. This will shift the demand curve to left as shown in figure 4.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

1. If prices of substitute goods (for consumers) decrease at the same time prices of substitute...
1. If prices of substitute goods (for consumers) decrease at the same time prices of substitute goods (for producers) decrease, what will happen to prices in this market? a Prices will not change. b Prices will decrease. c Prices will increase. d One cannot tell without more information. 2. A change in demand will cause the equilibrium price to change by ______________and the equilibrium quantity to change by ______________ with an inelastic supply than if supply were elastic. a more;...
The figure below (Figure 1) illustrates an Atwood's machine. Let the masses of blocks A and...
The figure below (Figure 1) illustrates an Atwood's machine. Let the masses of blocks A and B be 3.50 kg and 2.00 kg , respectively, the moment of inertia of the wheel about its axis be 0.400 kg⋅m2 and the radius of the wheel be 0.100 m . PART A Find the linear acceleration of block A if there is no slipping between the cord and the surface of the wheel. Express your answer in meters per second squared to...
The figure below (Figure 1) illustrates an Atwood's machine. Let the masses of blocks A and...
The figure below (Figure 1) illustrates an Atwood's machine. Let the masses of blocks A and B be 3.50 kg and 2.00 kg, respectively, the moment of inertia of the wheel about its axis be 0.400 kg⋅m2 and the radius of the wheel be 0.130 m. Part A Find the linear acceleration of block A if there is no slipping between the cord and the surface of the wheel. Express your answer in meters per second squared. Part B Find...
Which of the following will cause a decrease in market price? a. A decrease in the...
Which of the following will cause a decrease in market price? a. A decrease in the number of sellers of the good b. A technological improvement in the production of the good c. An increase in the cost inputs for production of the good d. The imposition of a binding price floor in the market
Complete the following figure, which illustrates the cell cycle. Use the figure on pages 82 and 83 of your textbook.
  Complete the following figure, which illustrates the cell cycle. Use the figure on pages 82 and 83 of your textbook.
In the figure, which line best illustrates the growth of a facultative anaerobe incubated aerobically?
In the figure, which line best illustrates the growth of a facultative anaerobe incubated aerobically?
Steel is the main input in the production of cars. A decrease in the price of...
Steel is the main input in the production of cars. A decrease in the price of steel will shift. Supply curve of cars to the right Demand curve of cars to the right Supply curve of cars to the left Demand curve of cars to the left An increase in the price of a substitute good will shift the Supply curve to the left Supply curve to the right Demand curve to the right Demand curve to the left Two...
Which production function illustrates the case of constant returns to scale?
 A xY = F (zK, zL) where x <z  B  zY = F (zK, zL)  C  yY =F (zK, zL) where y>z  Which production function illustrates the case of constant returns to scale?  Which production function illustrates the case of decreasing returns to scale?  Which production function illustrates the case of increasing returns to scale?    The costs of expected inflation include (choose one or more)  A  shoeleather cost  B  menu costs  C  variability in relative prices leading to microeconomic inefficiencies in the...
The accompanying figure illustrates various binary relations from R to R. Which are functions?
 The accompanying figure illustrates various binary relations from R to R. Which are functions? For those that are functions, which are onto? Which are one-to-one?
Which of the graphs in Figure 20-8 illustrates the AD-AS shifts associated with a currency depreciation?
Figure 20-8Which of the graphs in Figure 20-8 illustrates the AD-AS shifts associated with a currency depreciation?a.1b.2c.4d.3
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT