Representation of the demand and the supply for apples

Reference no: EM131773812

Question: Consider an abstract representation of the demand and the supply for apples where a, b, c and d are positive parameters.

Demand: Q = a - b P + I

Supply: Q =d + e P - C

Consider the following statement. Which part of the statement is incorrect? Explain your answer.

"If the cost of input for production (C) increases, the supply curve will shift upward, resulting in a smaller equilibrium quatity and a higher equilibirum price of apples. Because the price of apples increases, the demand for apples will shift to the left."

Reference no: EM131773812

Questions Cloud

Evaluate the different types of organisational change : Briefly discuss the background of the organisation under investigation and analyse the situation or risk - evaluate the different types of organisational change

Adopted the model employment termination act : The number of states that have adopted the Model Employment Termination Act is. Describe the Growth mindset. How is it different than the fixed mindset?

Underlying cultural values of an organization : How much do you think it is possible for an outsider to discern about the underlying cultural values of an organization by analyzing symbols

Discuss the payroll department and one day an employee comes : Assume that you work in the payroll department and one day an employee comes in and says to you

Representation of the demand and the supply for apples : "If the cost of input for production (C) increases, the supply curve will shift upward, resulting in a smaller equilibrium quatity and a higher equilibirum.

Scenarios require more than one function : Many of the scenarios require more than one function. The "Answers" column lists the number of functions your answer should include.

Calculate the annualized rate of occurrence : Calculate the annualized rate of occurrence (ARO) and annualized loss expectancy (ALE) for each risk

What is waste management hierarchy : Is the usage of the resource governed by internal organisational guidelines or specifications? What is waste management hierarchy?

Review problem on market of apples : Consider the market of apples. Use the demand and supply diagram to explain the effect of a bad weather that has negatively affected the harvest on the price.

User Account

All Pages