What causes supply curves to move from s' to s'?
If the supply curves that are drawn represent supply curves for single-family residential houses, then the movement from S to S' could be caused by a(n) a. increase in the price of apartments which are a substitute for single-family houses for many people looking for a place to live. b.
What would happen if price in this market is currently $14?
If price in this market is currently $14, then there would be a (n) a. surplus of 20 units. The law of supply and demand predicts that the price will rise from $14 to a higher price. b. excess supply of 20 units. The law of supply and demand predicts that the price will fall from $14 to a lower price.
What would happen to the equilibrium price and quantity of lattés?
What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk, which is used to make lattés, increased, and scientists discovered that lattés cause heart attacks? a. Both the equilibrium price and quantity would increase.
What is the impact of increasing number of buyers on equilibrium?
Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous 11. Suppose the number of buyers in a market increases and a technological advancement occurs also.
Which of the following events must result in a higher price in the market for cigars quizlet?
Which of the following events must result in a higher price in the market for cigars? Demand for cigars increases, and supply of cigars decreases.
Which of the following sets of events must cause an increase in the price of a new house quizlet?
19) Which of the following sets of events must cause an increase in the price of a new house? rents, increases in population, and expectations of higher house prices in the future.
How does the market move towards equilibrium quizlet?
The free market tends to move toward equilibrium as suppliers supply to make profit and buyers demand follows price. Any price or quantity not at equilibrium. When quantity supplied is not equal to quantity demanded in a market. When quantity supplied is more than quantity demanded.
Which of the following events would cause the supply curve to shift to the right?
A technological improvement that reduces costs of production will shift supply to the right, so that a greater quantity will be produced at any given price. Government policies can affect the cost of production and the supply curve through taxes, regulations, and subsidies.
Which of the following sets of events would most likely cause an increase in the price of a new house?
Which of the following sets of events would most likely cause an increase in the price of a new house? c. higher wages for carpenters, higher wood prices, increases in consumer incomes, higher apartment rents, increases in population and expectations of higher house prices in the future.
Which of the following would cause the equilibrium price to increase and the equilibrium quantity to decrease?
An increase in the price of a substitute increases the equilibrium price of a product and decreases the quantity demanded.
How does the market move towards equilibrium?
Sellers make up the supply side of the market. As buyers and sellers interact, the market will tend toward an equilibrium price. It's as if an invisible hand pushes and pulls markets toward their equilibrium level.
How market forces move the price to equilibrium?
Whenever markets experience imbalances—creating disequilibrium prices, surpluses, and shortages—market forces drive prices toward equilibrium. A surplus exists when the price is above equilibrium, which encourages sellers to lower their prices to eliminate the surplus.
Which of the following occurs when the market is in equilibrium?
a. Market equilibrium occurs at the point where market clears, that is, where quantity supplied is equal to quantity demanded. In other words, equilibrium price is the price at which there exists neither surplus nor shortage. Looking at the entries in the last column (in bold), we can see the equilibrium price is $4.
What causes the supply curve to shift to the left?
Prices of Factors of Production An increase in factor prices should decrease the quantity suppliers will offer at any price, shifting the supply curve to the left. A reduction in factor prices increases the quantity suppliers will offer at any price, shifting the supply curve to the right.
Which of the following market changes would lead to a shift of the supply curve from old supply to new supply?
Which of the following market changes would lead to a shift of the supply curve from Old supply to New supply? Lower costs of transportation for the producers.
Which of the following will cause the market supply curve to shift?
Such conditions include the number of sellers in the market, the state of technology, the level of production costs, the seller's price expectations, and the prices of related products. A change in any of these conditions will cause a shift in the supply curve.
When a flat rate subsidy is given to the sellers, it will result?
When a flat-rate subsidy is given to the sellers, it will result. In the price paid by the consumers being higher than the pre-subsidy market price but lower than the price received by the sellers. If the demand curve is relatively more elastic than the supply curve, and the flat-rate subsidy is given to the sellers.
What happens when the demand curve is less elastic than the supply curve?
If the demand curve is relatively more elastic than the supply curve, and the flat-rate subsidy is given to the buyers. Subsidies benefit sellers, but make consumers worse off. If the demand curve is relatively less elastic than the supply curve, and the flat-rate subsidy is given to the sellers.
What is a positive supply shock?
If the government provides a flat-rate subsidy to the sellers of a market, it will show, in a supply and demand model diagram, as: A positive supply shock. If the government provides a flat-rate subsidy to the buyers of a market, it will show, in a supply and demand model diagram as: A positive demand shock.
What happens when a flat rate subsidy is given to the buyer?
Lower price and higher quantity exchanged on the market. When a flat-rate subsidy is given to the buyers, it will result. In the price paid by the consumers, being lower than the pre-subsidy market price but lower than the price received by the sellers. When a flat-rate subsidy is given to the sellers, it will result.
What are the benefits of specialization and trade?
The most obvious benefit of specialization and trade is that they allow us to. consume more goods than we otherwise would be able to consume. Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate. Refer to Table 3-4.
What happens if the demand for donuts is elastic?
If the demand for donuts is elastic, then a decrease in the price of donuts will. increase total revenue of donut sellers. If a 25 percent change in price results in a 40 percent change in quantity supplied, then the price elasticity of supply is about. 1.60, and supply is elastic.
What causes the price of red wine to rise?
A drought in California destroys many red grapes causing the prices of both red grapes and red wine to rise. As a result, the consumer surplus in the market for red grapes. decreases, and the consumer surplus in the market for red wine decreases. Refer to Figure 7-1.
Why was the minimum wage instituted?
The minimum wage was instituted to ensure workers. a minimally adequate standard of living. A tax on the sellers of coffee will increase the price of coffee paid by buyers, decrease the effective price of coffee received by sellers, and decrease the equilibrium quantity of coffee.