For each of the following statements, draw a diagram that
illustrates the likely effect on the market for Toyota cars.
Indicate in each case the impact on equilibrium price and
equilibrium quantity..
A Mechanic Engineer warns that new Toyota cars overheats during
long journeys.
b. The
price of rubber which is used to produce tyres reduces.
c. A fall
in the price of Nissan cars.
d. A rise in bus tariffs .
e. A
successful advertising of...
The diagram to the right illustrates a competitive market in which the product provides an external benefit. If a voucher equal to $20/unit (i.e., a voucher equal to the marginal external benefit) is given to consumers, then total surplus will A. fall by Area D. B. fall by Area A+B. C. fall by Area B. D. rise by Area C+D. E. rise by Area C + F.
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...
Which of the following illustrates the law of supply? A. An increase in the number of firms in an industry causes a shift of the supply curve. B. An increase in price causes an increase in the quantity supplied, and a decrease in price causes a decrease in the quantity supplied. C. A change in price causes a shift of the supply curve. D. All of the above illustrate the law of supply.