Increase in supply in both markets

Assignment Help Business Economics
Reference no: EM133131627

1. If the demand for good A is more elastic than the demand for good B, a small increase in supply in both markets will cause

a. a much greater increase in the equilibrium quantity of good A than for good B

b. a much greater increase in the equilibrium quantity of good B than for good A

c. the equilibrium quantity will decrease by the same amount in both markets

d. only the equilibrium quantity of good B will decrease

e. only the equilibrium quantity of good A will decrease

Reference no: EM133131627

Questions Cloud

Disruptions in supply chains of most industries : 1) The pandemic causes disruptions in supply chains of most industries.
How does the interviewer frame questions about sexuality : Listen to interviews with the break-out stars of, respectively, An American Family (1973) and Keeping Up With The Kardashians (2007-2021).
Same general neighborhood : A one-story, brick veneer, three-bedroom house sold for $185,000. A two-story, vinyl-sided, three-bedroom house sold for $185,000. Both houses were sold in the
Find same general neighborhood : A one-story, brick veneer, three-bedroom house sold for $185,000. A two-story, vinyl-sided, three-bedroom house sold for $185,000. Both houses were sold in the
Increase in supply in both markets : 1. If the demand for good A is more elastic than the demand for good B, a small increase in supply in both markets will cause
Achieve a quality customer experience : Quality customer service is at the forefront for Vanessa and she wants to make sure the team can deliver to the standard required. Vanessa explains to the team
What is the bank net liquidity : The bank has $10 million in T-bills, a $5 million line of credit to borrow in the repo market, What is the bank's net liquidity
Define intelligence : How would you define "Intelligence"? What factors did you consider in formulating this definition? Many in the IC do not like the term "connect-the-dots"
Buddhism conflicts with modern science : What are the three ways that a Buddhist can coherently respond to the charge that Buddhism conflicts with modern science? Which on seems most plausible to you?

Reviews

Write a Review

Business Economics Questions & Answers

  What are the risk-neutral probabilities

A stock is currently selling at £100. A call option on the stock has an exercise price of £120. The option expires in 3 months' time. Prices for the stock could

  Widgets are supplied by a competitive constant-cost industry

Widgets are supplied by a competitive constant-cost industry. On Monday, the industry is in both short-run and long-run equilibrium. On Tuesday, the demand for widgets increases and the industry moves to a new short-run equilibrium. On which day or d..

  Department of energy instead of by free market

Imagine that politicians have decided that fuel prices are excessive for U.S. drivers and have passed a law that grants the power to regulate retail fuel prices to the U.S. Department of Energy. • How might supply and demand for fuel be affected by f..

  Describe the retail environment

What do you think the store of the future will look like? Describe the retail environment and the experience for the shopper. Select one of the future stores suggested by another member of the class, and provide some additional recommendations that w..

  What is the total initial cash outflow

Question 1: What is the total initial cash outflow? (nearest dollar, show your answer as a negative number)

  Behavior might be encouraged by moral hazard

For each of the following kinds of insurance, explain briefly what sort of behavior might be encouraged by moral hazard:

  Explain why do you think it is important for managers

Explain why do you think it is important for managers to understand the mechanics of supply and demand both in the short run and in the long run.

  Most countries import substantial amounts of goods-services

Most countries import substantial amounts of goods and services from other countries. Yet the theory says a nation can enjoy a high standard of living only if it can produce a large quantity of goods and services itself. Can you reconcile these two f..

  Draw hypothetical supply and demand graphs for men

Draw hypothetical supply and demand graphs for men and women to both occupations assuming that some of each gender prefers each job. Now, assume that discriminatory actions take place in the restaurant business preventing men from becoming chefs. Sho..

  Calculate quantity supplied and quantity demanded

The market for a box of POG’s is defined by Qd=80-P and Qs=P. Calculate perfectly competitive equilibrium, consumer surplus, and producer surplus. Calculate quantity supplied, quantity demanded, and producer surplus, consumer surplus, and deadweight ..

  Final price and quantity of labor

In a bilateral monopoly, like that of a players' union and major sports league, what factor determines the final price and quantity of labor? Why?

  High uncertainty consumer electronics markets

Why would limit entry pricing be more difficult in high growth and high uncertainty consumer electronics markets?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd