Homework Help

Business
Economics
question 11 1 point consider the supply of a good...

Question: question 11 1 point consider the supply of a good...

Question details

Question 11 (1 point) Consider the supply of a good illustrated in the graph below. Suppose firms exit the industry. What effect would this have in the graph? p. Price So po Quantity This would result in a slide down the supply curve This would result in a slide up the supply curve 3 5 6

Consider the market for apartments in New York City illustrated in the figure below. Assume the market is initially in equilibrium at point A. Suppose the price of houses increases, making homeownership more expensive. How does this affect the market? S1 p. Rent Pl Di Q. Quantity of Apartments The apartment demand curve will shift to the left. The apartment supply curve will shift to the right The apartment demand curve will shift to the right. 4 5 6

Question 13 (1 point) Consider the market for soybeans illustrated in the figure below. Assume the market is initially in equilibrium at point A. Then assume the government imposes a price floor of p2. How does this affect the market? p. S per bushel P2 PI Di Qo QQ. Quaatity of Soybeans The price floor results in a surplus of corn. The price floor is not binding and has no effect. The price floor results in a shortage of corn. 5

Consider the market for soybeans illustrated in the figure below. Assume the market is initially in equilibrium at point A. Suppose harsh weather destroys a portion of the soybean crop. How does this affect the market? S1 p. S per bushel Pi Di Q Quantity of Soybeans The soybean demand curve will shift to the left The soybean supply curve will shift to the right The soybean supply curve will shift to the left The soybean demand curve will shift to the right 4 5 6 9

Question 15 (1 point) Consider the market for apartments in New York City illustrated in the figure below. Assume the market is initially in equilibrium at point A. Suppose liability insurance premiums paid by landlords on their rental properties decrease. How does this affect the market? Si P. Rent Pl Di Qi Q.Quantity of Apartments The apartment demand curve will shift to the right. The apartment supply curve will shift to the right 4 5 6

Consider the market for apartments in New York City illustrated in the figure below. Assume the market is initially in equilibrium at point A. Then assume the city imposes a price ceiling of p2. How does this affect the market? Si p. Rent Pi Di Qs Qi Op Q.Quantity of Apartmments The price ceiling results in a surplus of apartments. The price ceiling results in an equilibrium where supply equals demand. The price ceiling is not binding and has no effect. 5 6

Consider the market for soybeans illustrated in the figure below. Assume the market is initially in equilibrium at point A. Suppose the price of peas increases (and that peas are a substitute for soybeans) and that harsh weather destroys a portion of the soybean crop. How does this affect the market? Si p. S per bashel Pi Quaosity of Sostbeas The equilibrium price will increase and the equilibrium quantity will decrease. The equilibrium price will decrease and the equilibrium quantity could increase or decrease. The equilibrium price will increase and the equilibrium quantity could increase or decrease. 4 5 6

Solution by an expert tutor

Blurred Solution

This question has been solved

Subscribe to see this solution