Q we observe that the equilibrium price of a cup of coffee

Assignment Help Microeconomics
Reference no: EM13376056

Q. We observe that the equilibrium price of a cup of coffee sold in cafes rises but the equilibrium quantity, i.e. cups, of tea sold in cafes falls. Assume that a cup of coffee and a cup of tea are substitutes. Evaluate each of the following statements.

1. A rise in the price of coffee beans, which is a material for a cup of coffee, is responsible for these observations.

2. A rise in the price of tea leaves, which is a material for a cup of tea, is responsible for these observations. 

Reference no: EM13376056

Questions Cloud

You have taken a job as pricing manager for a very fine : you have taken a job as pricing manager for a very fine mens clothing line that sells high-end tailored shirts suits
Assume that there is concern that the economy is not : assume that there is concern that the economy is not recovering from the current recession due to a high unemployment
Consider a landscaping service market here landscaping : consider a landscaping service market. here landscaping means mowing weeding and trimming etc i.e. a regular
Q bert as a consumer places the value on a pair of jeans : q. bert as a consumer places the value on a pair of jeans as follows. value of first pair 45value of second pair
Q we observe that the equilibrium price of a cup of coffee : q. we observe that the equilibrium price of a cup of coffee sold in cafes rises but the equilibrium quantity i.e. cups
Q1 dick and jane are living in a two-bedroom unit in an : q.1 dick and jane are living in a two-bedroom unit in an apartment complex that has a swimming pool spa fitness center
1 suppose that in the market for us meat packers two : 1. suppose that in the market for us meat packers two things happen simultaneously 1. due to growth in less developed
1 in problem 1 sir plus has a demand function for mead that : 1. in problem 1 sir plus has a demand function for mead that is given by the equation dp 100 - p. if the price of mead
Land along the yarra river in melbourne has high value as : land along the yarra river in melbourne has high value as developed property but in undeveloped form increases the

Reviews

Write a Review

Microeconomics Questions & Answers

  What factors may help determine the value of information

In economics, what factors may help determine the value of information Can you provide factors in the case when information is treated as a consumption good Can you provide factors in the case when information is treated as an input in the decisio..

  When does marginal social benefit equal marginal social cost

Answer the following scenario thoroughly utilizing key terms and concepts covered in the previous units reflecting full understanding of the concept of macro economics as it relates to the scenario described. Provide examples and clear rationaliza..

  What extent would increased government involvement

What factors affect the fuel efficiency of cars · To what extent would increased government involvement with regard to fuel efficiency affect the behavior of manufacturers · To what extent would increased government involvement with re..

  Identify equilibrium hours of work for woman 1 and 2

The second graph should show the situation for two women who have the same valuation of nonmarket time (shadow wage) but different market wage rates, again with one of them choosing to work in the market and the other choosing.

  Which are likely to be complements and which are likely

Travel by bus and travel by subway If the price of one of the goods increases, explain the effect on the quantity demanded of each of the goods. In each pair

  Explain craft unions

Both industrial unions and craft unions attempt to raise their members' wages, but each goes about it differently. Explain the diffeence in approaches and describe the impact these differences have on excess quantity of labor supplied.

  A paper mill discharges gunk that causes damage

A paper mill discharges gunk that causes damage of $200 to the fishermen's business. The pollution damage can be eliminated in one of two ways: the mill can install a filter at cost $300 or fishermen can install a water treatment plant at cost..

  What is the opportunity cost of investing in capital

what is the opportunity cost of investing in capital do you think a country can overinvest in capital what is the opportunity cost of investing in human capital do you think a country can overinvest in human capital

  Market structure - principles of microeconomicsyou have

market structure - principles of microeconomicsyou have been hired as a consultant by your local mayor to look at the

  Determine the average nominal income

If the CPI equaled 1.30 in 1990, 1.69 in 2000, and the nominal income of agricultural workers was $35,000 in 2000, what was the average nominal income of agricultural workers in 1990?

  Difference between shutting down and going out of business

You are the manager of a perfectly competitive firm selling a product. Your business is making a loss because total revenue is less than total costs. What would you do--shut down or continue to operate.

  The selected domestic issue to the economy

Analyze the impact of the selected domestic issue to the economy and suggest how the negative impact of the issue can be minimized. Provide support for your rationale.

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