1. Suppose that producers of a cotton benefit from technological advancements. The equilibrium PRICE of cotton...

1. Suppose that producers of a cotton benefit from technological advancements. The equilibrium PRICE of cotton will ----- and the equilibrium QUANTITY of cotton will -----.

2. Suppose sellers of manufactured ice expect prices to be higher in the future, and at the same time the price of a complement for this good increased, and demand shifts more than supply. As a result the equilibrium price ----- and the equilibrium quantity -----.

3. Casava and Plantains are substitutes. Suppose the price of Casava increases. As a result, the ----- for plantains will -----.

4. In the market for structural wood members there are more sellers of this good, and at the same time the price of a complement for this good increased, and demand and supply shift the same amount. As a result the equilibrium price ----- and the equilibrium quantity -----.

Expert Solution

Answers

1. Suppose that producers of a cotton benefit from technological advancements. The equilibrium PRICE of cotton will decrease and the equilibrium QUANTITY of cotton will increase.

2. Suppose sellers of manufactured ice expect prices to be highest in the future, and at the same time the prices of a complement for this good increased, and demand shifts more than supply . As a result the equilibrium price will increase and the equilibrium quantity will decrease.

3. Casava and Plantains are substitutes . Suppose the price of Casava increases . As a result , the demand for the plantains will increase .

4. In the market for structural wood members there are more sellers for this good , and at the same time the price of a complement for this good increased , and demand and supply shift the same amount. As a result the equilibrium price decrease and the equilibrium quantity will remain constant .

Rahul Sunny answered 1 year ago

(1) Suppose that the current equilibrium price is $110 per software. A technological advance take place...

(1) Suppose that the current equilibrium price is $110 per software. A technological advance take place is the software industry. Is this a change in supply or demand? Describe what would be true in the market if, after this development, the price remained at $110. Would this be an equilibrium price? Why or why not? What would eventually happen in the market for software? What would happen to the equilibrium price and quantity for software? Which quantity is affected and...

If the market price is above the equilibrium price: A) A shortage will occur and producers...

If the market price is above the equilibrium price: A) A shortage will occur and producers will produce more and lower prices B) A surplus will occur and producers will produce less and lower prices C) A surplus will result and consumers will bid prices up D) Producers will make extremely high profits A product market is in equilibrium: A) when there is no surplus of the product. B) when there is no shortage of the product. C) when consumers...

Suppose that the current equilibrium price is $110 per software. A technological advance take place is...

Suppose that the current equilibrium price is $110 per software. A technological advance take place is the software industry. Is this a change in supply or demand? Describe what would be true in the market if, after this development, the price remained at $110. Would this be an equilibrium price? Why or why not? What would eventually happen in the market for software? What would happen to the equilibrium price and quantity for software? Which quantity is affected and why?...

Explain the effects of a tax on producers on the equilibrium price and quantity in a...

Explain the effects of a tax on producers on the equilibrium price and quantity in a competitive market. Comment on the effect on surpluses and the gains from trade.

What was the two-price cotton policy? How did this affect U.S. textile producers?

1. Technological advancements likely contributed to the "hollowing out" of the earnings distributions because they

1. Technological advancements likely contributed to the "hollowing out" of the earnings distributions because they a. are biased towards those with high skills b. allow firms to substitute technology for unskilled workers c. complement the skills of highly educated workers d. allow firms to substitute technology for workers who perform routine tasks e. all of the above 2. Which of the following is not an implication of search theory? a. workers will be unemployed until they receive an offer...

If the number of producers in a market increases, what happens to the equilibrium price and...

If the number of producers in a market increases, what happens to the equilibrium price and quantity? Question 10 options: A) Equilibrium price decreases, and equilibrium quantity increases. B) Equilibrium price and quantity increase. C) Equilibrium price increases, and equilibrium quantity decreases. D) Equilibrium price and quantity decrease.

Suppose the world price of cotton rises substantially. The demand for labor among cotton-producing firms in...

Suppose the world price of cotton rises substantially. The demand for labor among cotton-producing firms in Texas will . The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will . The temporary unemployment resulting from such sectoral shifts in the economy is best described as unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. Establishing government-run employment...

QUESTION 18 To say that a price is "too low for equilibrium" means that: A. producers...

QUESTION 18 To say that a price is "too low for equilibrium" means that: A. producers are making substantial profits B. consumers want to pay a lower price than sellers are currently charging. C. there will occur a surplus of the product. D. the amount demanded exceeds the amount supplied. QUESTION 19 A point on a demand curve indicates: A. a particular price and the corresponding quantity demanded by consumers. B. a combination of two consumer goods which buyers will...

1) Who benefits from price discrimination? In order for price discrimination to work producers must be...

1) Who benefits from price discrimination? In order for price discrimination to work producers must be able to do what? 2) Describe your plan to reduce asymetric information in buying a house, car, insurance policy or choosing a college to apply to. 3) What are the benefits and shortcomings of Monopoly? Need help with these 3 questions.

Question