Quantity demanded and supplied , Managerial Economics

Assignment Help:

a.  A major freeze destroys a large number of orange trees in Florida

Ans- Since the freeze destroyed a large number of orange trees in Florida the number of oranges the sellers can offer for sale would decrease.  Due to the reduced supply the price would rise. Other things being constant, quantity demanded would contract due to rise in price.

b.  The scientists in the agricultural extension service of the University of Florida discover a way to double the number of oranges produced by each orange tree.

Ans- The new technique would result in an increased supply of oranges. This would lower the price of oranges. Other things being constant, quantity demanded would rise due to fall in the price of oranges.

c.   The American Medical Association announces that drinking orange juice can reduce the risk of heart attack.

Ans- Due to this announcement made by the American Medical Institute more people would prefer to have orange juice to avoid the risk of heart attack. This would increase the demand for orange juice and thus will raise its price. Other things being equal higher the price, higher is the quantity supplied.

d.  The price of Florida grapefruit falls

Ans- The fall in price of grapefruit would on one hand result in a higher quantity demanded and on the other hand sellers would be less willing to offer a larger quantity for sale at reduced price. The sellers and buyers would negotiate a price at which they are fully satisfied and have no tendency to deviate from it. This will be the equilibrium price at which quantity demanded and supplied are equal.


Related Discussions:- Quantity demanded and supplied

Deemand forecasting, Q 3. What is Demand Forecasting? Explain in brief vari...

Q 3. What is Demand Forecasting? Explain in brief various methods of forecasting demand.

Asset market theory in environment and development, what is asset market th...

what is asset market theory theory in environmental economics?

The position of an economic relationship, Using the relationship among the ...

Using the relationship among the price of a visit to a physiotherapist and the quantity of visits demanded, explain and distinguish between the direction, the slope, and the positi

In how costless bargaining will lead to a socially efficient, A firm can pr...

A firm can produce steel with or without a filter on its smokestack. If it produces without a filter, the external costs on the community are $500,000 per year. If it produces with

Mba assignment, what is the role of managerial economics in running a busin...

what is the role of managerial economics in running a business?

Public Debt, what are the Sources of public debt

what are the Sources of public debt

Income elasticity of demand, Income elasticity of demand The income el...

Income elasticity of demand The income elasticity of demand measures the degree of responsiveness of the quantity demanded of a product to changes in income.  Its co-efficient

Define the natural monopoly, Q. Define the Natural Monopoly? Natural M...

Q. Define the Natural Monopoly? Natural Monopoly: Natural monopoly is because of natural factors. For illustration, a particular raw material is concentrated at a specific pl

Oligopoly theory, in the context of oligopoly theory explain the channels v...

in the context of oligopoly theory explain the channels via which either a cost reduction or a quantity increase influence a supplier''s profitability

Write Your Message!

Captcha
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