Suppose the demand for olive oil is highly inelastic

Assignment Help Business Economics
Reference no: EM131108218

Suppose the demand for olive oil is highly inelastic. Also suppose that the supply of olive oil is fixed for the year. If the demand for olive oil suddenly increases because of a shortage of corn oil, would you expect a ________ in the price of olive oil.

A: Large increase

B: Small increase

C: Large decrease

D: Small decrease

E: No change

Reference no: EM131108218

Questions Cloud

How many cell lengths are added in one week, on average : How many cell lengths are added in one week, on average?
Find the maximum profit : Find the maximum profit and What are the dimensions of the garden, which will maximize the area of the garden?
A manufacturer of electronic fitness equipment : Cherone Equipment, a manufacturer of electronic fitness equipment, wishes to evaluate two alternative plans for increasing its production capacity to meet the rapidly growing demand for its key product-the Cardiocycle.
Explain whether a person can ever be rid of superstitions : Interview a family member or friend to discover a superstition that he or she believes in. Explain the nature of the event that led to the formation of this superstition. Does this information fit with your understanding of how the operant conditi..
Suppose the demand for olive oil is highly inelastic : Suppose the demand for olive oil is highly inelastic. Also suppose that the supply of olive oil is fixed for the year. If the demand for olive oil suddenly increases because of a shortage of corn oil, would you expect a ________ in the price of olive..
The acquisitions took place as shown below : Assuming a 40% tax rate, compute the earnings per share data that should appear on the financial statements of Bailey Industries as of December 31, 2010. Assume that the expropriation is extraordinary.
Profit-maximizing monopolistically competitive firm : Use a graph to demonstrate why a profit-maximizing monopolistically competitive firm must operate at excess capacity. Explain why a perfectly competitive firm is not subject to the same constraint.
How a dual converter is operated in the motoring : describe how a dual converter is operated in the motoring and generating modes.
What is the corresponding rotor shaft speed : What is the applied voltage? What is the resulting frequency of the waveform? What is the corresponding rotor shaft speed? Verify that the simple motor rotates, and note how much voltage is needed to turn the motor.

Reviews

Write a Review

Business Economics Questions & Answers

  How many alligators you keep and the amount of money spent

The marginal damage to your neighbor's business is a function of how many alligators you keep and the amount of money spent on a fence that separates your properties:

  Contrast the three different perspectives on sustainability

Compare and contrast the three different perspectives on sustainability. What is your perspective and how would you classify it given the three general views of sustainability we discussed? Consider what you have learned about the economics of non-re..

  Find incumbents optimal choice of output

Suppose two firms compete by selecting quantities q1 and q2, respectively, with the market price given by p = 1000 – 3q1 -3q2. Firm 1 (the incumbent) is already in the market. Firm 2 (the potential entrant) must decide whether or not to enter, and if..

  According to the article homophobia as weapon of sexism

According to the article "Homophobia as a Weapon of Sexism," by Suzanne Pharr, which statement is false? The Declaration of Sentiments and Resolution at the Seneca Falls Convention in 1843 was a short but powerful document that focused primarily on i..

  Illustrate what are some of the damaging effects deflation

Illustrate what are some of the damaging effects deflation has on an economy. Elucidate  what would be a monetary policy prescription to reduce or eliminate deflation.

  Goods and services between households and firms

Draw a simple circular flow diagram showing the flow of dollars, goods & services between households & firms. Explain why the dollar flow out of households and into businesses must be equal. Is the same true in the expanded circular flow? Explain.

  Consumption is measured as gallons consumed every month

Suppose taxes are measured in cents as in the first case, but consumption is measured as gallons consumed every month.

  Publisher also the analyst making about price elasticity

Illustrate what implicit assumptions is the publisher also the analyst making about price elasticity.

  How much the postal service charge for each letter delivered

The postal service carrier works on Sunday delivering special high-priority letters. She can deliver 15 letters per hour. The hourly fixed costs (vehicle depreciation, insurance, etc.) equal $42, and the hourly variable costs

  Mortgage option and the incremental cost of borrowing

An investor would like to purchase a $2,000,000 new apartment house and has two financing options under consideration: Option 1 includes a 70% loan to value mortgage for 15 years at 6.5% interest and 3% closing costs. Compute the APR for each mortgag..

  Positive debt-income relationship using a regression concept

The ratio of consumer liabilities to consumer financial assets rose from just over 10% in 1950 to more than 30% in 2009. However, recent researches points to a number of factors that bear on the consumer’s decision of when and how much to borrow. How..

  Regarding trade costs associated with national borders

Compare to a monopolistically competitive firm with a higher marginal cost, a firm with a lower marginal cost will. Which of the following is true regarding trade costs associated with national borders? For the following, specify whether th eforeign ..

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