Which of the following describes the statement "A fall in the supply of petrol will lead to an increase in its price"? a. Positive statement b. Negative statement c. Opinion statement d. Normative statement

Which of the following describes the statement "A fall in the supply of petrol will lead to an increase in its price"? a. Positive statement b. Negative statement c. Opinion statement d. Normative statement

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 7SCQ: Would a research study on the effects of soft drink consumption on childrens cognitive development...

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1. An increase in the expected price of oil would likely A. increase both the current demand and the current supply of oil. B. decrease both the current demand and current supply of oil. C. increase the current demand but decrease the current supply of oil. D. increase the current supply but decrease the current demand of oil. E. not affect the current demand nor current supply of oil. 2. Which of the following will not shift a supply curve of a good? A. A change in the price of relevant resources used to produce the good. B. A change in the good's price. C. A change in the technology used in producing the good. D. A change in the number of sellers of the good. E. A change in taxes affect this good's industry.
If instant noodles are an inferior good, and consumers’ income decreases, what is the expected effect on the equilibrium price and quantity of instant noodles? A. The equilibrium price and quantity of instant noodles will increase. B. The equilibrium price and quantity of instant noodles will decrease. C. The equilibrium price of instant noodles will increase, but the equilibrium quantity will decrease. D. The equilibrium price of instant noodles will decrease, but the equilibrium quantity will increase. E. None of the above.
How is equilibrium determined in goods market?
TRUE or FALSE. If the statement is correct, write TRUE on your answer sheet. If thestatement is incorrect, write FALSE. Explain why you answered TRUE or FALSE. 1. To some extent economics is about trade-offs. 2. If there is evidence that consumer income and the price of smartphones have influence onthe demand for tablet computers, the leftward shift in the demand curve of tabletcomputers is caused by a decrease in the price of tablet computers. 3. If fish and chicken are substitute goods, when the price of fish decreases with bountifulharvest, there will be a decrease in the quantity demand for chicken. 4. If organic virgin coconut oil (VCO) has been proven to enhance your immune systemagainst corona virus, the price VCO will increase because of a shift in supply and anunchanging demand curve.
The questions in parenthesis are the answer choices. Only 1 can be selected. In each of the following cases, determine how supply or demand shifts and how the equilibrium changes. a. Smartphones: Microchips used in smartphones become less costly to produce. As a result, the (demand for ,supply of, supply of and demand for) smartphones increase(s), causing the equilibrium price to (fall, rise, rise, fall, or remain unchanged) and the equilibrium quantity to (fall, rise, rise, fall, or remain unchanged) b. ALS medical research funds: The ALS ice bucket challenge goes viral, leading to greater awareness of the benefits of and need for ALS research. As a result, the (supply of and demand for, demand for, supply of) ALS research increase(s), causing the equilibrium price (or opportunity cost) of such research to (fall, rise, rise, fall, or remain unchanged) and the equilibrium quantity to (fall, rise, rise, fall, or remain unchanged) .
Would a research study on the effects of soft drink consumption on childrens cognitive development he a positive or normative statement?
Select the number of the question and the letter to indicate the answer you consider correctfor each question. 1. The Law of demanda. applies to final consumer goods but not to the productive resources purchased bybusiness firms.b. tells us how much of a good people want, but not necessarily how much of that good theyare willing to pay for.c. tells us that when the price of a good falls, quantity demanded will increase.d. applies only to goods that are not absolute necessities. 2. The law of supply states that all other things remaining the same:a. as the price of a good increases, supply of the good will increase.b. as the price of a good increases, the quantity of the good supplied willincrease.c. as the price of a good increases, demand for the good will increase.d. as the price of a good increases, the quantity of the good demanded willdecrease. 3. Which of the following most appropriately illustrates the law demand?a. Sellers increase the amount they sell because the price of the…
d. Suppose there is an increase in consumers' incomes. In the market for automobiles(a normal good), does this event cause an increase in demand or an increase in quantitydemanded? Does this cause an increase in supply or an increase in quantity supplied?(Explain. NB: Explanation must not be more than half a page.)e. Suppose there is an advance in the technology employed to produce automobiles. Inthe market for automobiles, does this event cause an increase in supply or an increasein the quantity supplied? Does this cause an increase in demand or an increase in thequantity demanded? Explain NB: Explanation must not be more than half a page.f. The demand and supply functions for two related commodities A and B in two differentmarkets are defined below:QdA= 410-5PA-2PB QdB= 295-PA-3PBQsA= -60+3PA QsB= -120+2PBi. Find the equilibrium conditions in the two marketsii. How are goods A and B related? Explain your.
B. Identify which of the following is a Change in Demand and Change in Qty Demanded. _1. The price of gasoline goes down and more motor oil is bought. _2. Price of fish falls, consumers are buying more fish. _3. Price of cellphones falls and more cellphones are bought. _4. Population changes its habit of drinking and they prefer cold drinks than hot drinks. 5. Face shields are required to avoid COVID-19 and more face shields are purchased _6. Consumers are buying goods online and few goes to the malls _7. People stay safe at home and consumes more electricity
3. Determinants of demand The following graph shows the demand curve for sedans (for example, Toyota Camrys or Honda Accords) in New York City. For simplicity, assume that all sedans are identical and sell for the same price. Initially, the graph shows market demand under the following circumstances: Average household income is $50,000 per year, the price of a gallon of gas is $4.00 per gallon. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Demand for Sedans Demand for Sedans 40 I Price of a sedan 15 (Thousand of dollars) Quantity Demanded 563 (Sedans per month) Demand Shifters Average Income (Thousands of dollars) 50 Demand 10 Price of Gas 4 (Dollars per gallon) 100 200 300 400 500 600 700 800 900 QUANTITY (Sedans per month) PRICE (Thousands of dollars per…
1. Your econ professor would like to buy a Tesla X, but he cannot afford one. He __________ have a demand for a Tesla X. A. does B. does not 2. Which of the following would not change the supply of a good? A. A change in the price of the good. B. A change in the technology for producing the good. C. A change in the price of a resource required to produce the good. D. A change in the number of firms producing the good. E. A change in the government regulation of firms producing the good.
When you go to the store to buy some M&Ms candy, you find they are LESS expensive than they were last month. Which of the following could explain why M&Ms are LESS expensive? Select one: a. Consumers have switched to buying other types of chocolate. b. A new study finds that the benefits of eating chocolate are enormous. c. The supply of cacao beans, used to produce chocolate, has decreased around the world. d. A new robot has been installed at the Mars chocolate company which actually increases the time needed to produce M&Ms.