Kinh Nghiệm về Which of the following will occur if consumers expect the price of a good to fall in the coming months? 2022
Hoàng Trung Dũng đang tìm kiếm từ khóa Which of the following will occur if consumers expect the price of a good to fall in the coming months? được Cập Nhật vào lúc : 2022-10-13 20:52:23 . Với phương châm chia sẻ Thủ Thuật về trong nội dung bài viết một cách Chi Tiết Mới Nhất. Nếu sau khi đọc tài liệu vẫn ko hiểu thì hoàn toàn có thể lại phản hồi ở cuối bài để Ad lý giải và hướng dẫn lại nha.1. If consumers expect the price of some good to rise next week, then we generally observe the price of the good rising this week. Explain this fact using a graph.
Nội dung chính- What will happen if consumers of a good expect the price of the good to decrease in the near future?What is likely to happen when the price of a good falls?What happens to a consumer real income when the price falls?What happens to the price of a product if the demand for it falls?
If the good is storable, and an increase in price is expected, consumers will want to buy the good today, before the price increases. As a result, the current demand for the good increases, which results in an increase in the price of the good today. See graph.
2. The drought in the plain states has made grain, and therefore feed, quite expensive. Many ranchers cannot afford to feed their cattle, and have sold much of their herd for slaughter.
a. What will be the immediate effect of this sự kiện on the equilibrium price and quantity of beef? Illustrate using a supply and demand diagram.
Slaughtering the cows will result in an increase in the supply of beef to the market, which will in turn lead to a decrease in the equilibrium price of beef and an increase in the equilibrium quantity of beef. See graph.
Market for beefb. Chicken and beef are substitute goods. Illustrate the effect that the slaughter of the cattle herds will have on the equilibrium price and quantity of chicken.
As the price of beef decreases, consumers will buy more beef and less chicken. The demand for chicken will decrease, causing a decrease in the equilibrium price and quantity of chicken. See graph.
Market for chickenc. As it happens, the slaughter of beef cattle has coincided with a decrease in consumers' income. Assuming that steak is a normal good while hamburgers are an inferior good, use a supply-and-demand diagram for either market to illustrate the combined effect of the two aforementioned events on the equilibrium price and quantity of hamburgers and steak.
As consumers' income decreases, the demand for normal goods (such as steak) decreases while the demand for inferior goods (such as hamburgers) increases.
Keep in mind that our conclusion from part a is still valid. A lower price of beef will increase the supply of all goods in which beef is an input. Therefore in each of the two markets in question we giảm giá with simultaneous shifts in supply and demand.
3. Assume that the markets for sugar cane, rum, and whiskey are initially in equilibrium. Assume further that Hurricane Marilyn destroys much of the Jamaican sugar cane crop. Sugar cane is a principal ingredient in rum, but
it is not an ingredient in whiskey. Analyze the effect of the hurricane on the markets for each of the three goods. Explain using graphs.
Step One - The market for sugar cane
The Hurricane results in a decrease in supply ( any given price, sellers are no longer able to provide as much cane as they used to). As a result, the equilibrium price of sugar cane will increase, and the equilibrium quantity will decrease. See graph.
Market for sugar caneStep Two - The market for rum
Sugar cane is a principal ingredient in rum, and it is now more expensive. An increase in the price of inputs causes a decrease in supply. As a result, the equilibrium price of rum will increase, and the equilibrium quantity will decrease. The graph will be similar to the one above.
Step Three - The
market for whiskey
It is reasonable to assume whiskey and rum are substitutes. Rum is now more expensive than it used to be (see Step Two). As a result, more consumers will buy whiskey instead. This will cause an increase in the demand for whiskey, which leads to higher equilibrium price and quantity of whiskey. See graph.
Market for whiskeyThe market demand curve shows
a. the effect on market supply of a change in the demand for a good or service.b. the quantity of a good that consumers would like to purchase different prices.
c. the marginal cost of producing and selling different quantities of a good.
d. the effect of advertising expenditures on the market price of a good.
At a price of $4.95, a pulp fiction novel is expected to sell 9,000 copies. If the novel is offered for sale a price of $3.95, then the publisher can expect to sell
a. less than 9,000 copies.b. 9,000 copies.
c. more than 9,000 copies.
d. It is impossible to predict the effect of a lower price on sales.
During a recession, economies experience increased unemployment and a reduced level of activity. How would a recession be likely to affect the market demand for new cars?
a. Demand will shift to the right.b. Demand will shift to the left.
c. Demand will not shift, but the quantity of cars sold per month will decrease.
d. Demand will not shift, but the quantity of cars sold per month will increase.
The market supply curve shows
a. the effect on market demand of a change in the supply of a good or service.b. the quantity of a good that firms would offer for sale different prices.
c. the quantity of a good that consumers would be willing to buy different prices.
d. All of the above are correct.
At a price of $299.95, the manufacturer of a portable gas-powered generator is willing to produce 19,000 units per quarter. At a price of $349.95, it is likely that the manufacturer will be willing to produce
a. more than 19,000 units per quarter.b. 19,000 units per quarter.
c. less than 19,000 units per quarter.
d. It is impossible to predict the effect of a higher price on the number of units of a product that a firm will be willing to produce.
Unionized workers may be able to negotiate with management for higher wages during periods of economic prosperity. Suppose that workers automobile assembly plants successfully negotiate a significant increase in their wage package. How would the new wage contract be likely to affect the market supply of new cars?
a. Supply will shift to the right.b. Supply will shift to the left.
c. Supply will not shift, but the quantity of cars produced per month will decrease.
d. Supply will not shift, but the quantity of cars produced per month will increase.
If automobile manufacturers are producing cars faster than people want to buy them,
a. there is an excess supply and price can be expected to decrease.b. there is an excess supply and price can be expected to increase.
c. there is an excess demand and price can be expected to decrease.
d. there is an excess demand and price can be expected to increase.
If a computer software company introduces a new program and finds that orders from wholesalers far exceed the number of units that are being produced,
a. there is an excess supply and price can be expected to decrease.b. there is an excess supply and price can be expected to increase.
c. there is an excess demand and price can be expected to decrease.
d. there is an excess demand and price can be expected to increase.
Market equilibrium refers to a situation in which market price
a. is high enough to allow firms to earn a fair profit.b. is low enough for consumers to buy all that they want.
c. is a level where there is neither a shortage nor a surplus.
d. is just above the intersection of the market supply and demand curves.
If the price of a good increases while the quantity of the good exchanged on markets increases, then the most likely explanation is that there has been
a. an increase in demand.b. a decrease in demand.
c. an increase in supply.
d. a decrease in supply.
If the price of a good decreases while the quantity of the good exchanged on markets increases, then the most likely explanation is that there has been
a. an increase in demand.b. a decrease in demand.
c. an increase in supply.
d. a decrease in supply.
If the price of a good increases while the quantity of the good exchanged on markets decreases, then the most likely explanation is that there has been
a. an increase in demand.b. a decrease in demand.
c. an increase in supply.
d. a decrease in supply.
If the price of a good decreases while the quantity of the good exchanged on markets decreases, then the most likely explanation is that there has been
a. an increase in demand.b. a decrease in demand.
c. an increase in supply.
d. a decrease in supply.
An increase in the demand for a good will cause
a. an increase in equilibrium price and quantity.b. a decrease in equilibrium price and quantity.
c. an increase in equilibrium price and a decrease in equilibrium quantity.
d. a decrease in equilibrium price and an increase in equilibrium quantity.
An increase in the supply of a good will cause
a. an increase in equilibrium price and quantity.b. a decrease in equilibrium price and quantity.
c. an increase in equilibrium price and a decrease in equilibrium quantity.
d. a decrease in equilibrium price and an increase in equilibrium quantity.
Assume that firms in an industry observe a 10% increase in the productivity of labor, but to get there they had to increase the cost of labor by 5%. What should be expected to happen in the output market as a result of this development?
a. The supply should increaseb. The supply should decrease
c. The supply should remain unchanged
d. The demand should increase
e. The demand should decreased
During 2002 – 2005 we saw significant increases in the construction of new housing stock in the US. During the same time period we also observed significant rises in the demand for homes. We know that during that time period both price and the level of homes traded increased. Based on that information what most likely happened in the market?
a. The rise in supply outpaced the rise in demand.b. The rise in demand outpaced the rise in supply.
c. The rise in demand was perfectly matched by rise in the supply.
d. None of the above
If a rise in supply exceeds a rise in demand, then we should expect
a. the equilibrium price and quantity levels will rise.b. the equilibrium price will rise while the equilibrium quantity will decline.
c. The equilibrium price will fall while the equilibrium quantity will rise.
d. the equilibrium price and quantity levels will decline.
In which instance will both the equilibrium price and quantity rise?
a. When demand and supply increase, but the rise in demand exceeds the rise in supply.b. When demand and supply increase, but the rise in supply exceeds the rise in demand.
c. When demand and supply decline, but decline in the demand exceeds the decline in supply.
d. When demand and supply decline, but the decline in supply exceeds decline in the demand.
In which instance can we observe a rise in the equilibrium price accompanied by a decline in the equilibrium quantity?
a. If both demand and supply decline, but the decline in demand exceeds the decline in supply.b. If supply declines while demand increases, and the decline in supply exceeds the increase in demand.
c. If both demand and supply increase.
d. None of the above.
To be an importer of a product the country must have its domestic price of the product be _____ the foreign price
a. higher thanb. lower than
c. equal to
To be an exporter of a product the country must have its domestic price of the product be _____ the foreign price
a. higher thanb. lower than
c. equal to
Which of the following will help a country become an exporter of a product (assume that the product is a normal good given the median consumer income)?
a. An increase in incomes of domestic consumersb. A recession abroad
c. An increased productivity of domestic labor
d. An increased cost of domestic labor
In 2010 Russia was affected by a significant draught. Russia is a major producer and exporter of several agricultural commodities. As a result of the draught, Russia reduced some of its agricultural exports. In the context of the world supply/demand model for the affected agricultural commodities we should observe:
a. Reduced demand and reduced supplyb. Reduced supply and unchanged demand
c. Reduced supply and increased demand
d. Increased supply and unchanged demand
e. Increased supply and reduced demand
In November of 2010 the US Central Bank, the Federal Reserve, embarked on a policy of quantitative easing. Since this policy essentially represents an increase in the supply of money, it may create inflationary expectations. Let’s assume (and this is a strong assumption), that as a result of this policy, US households start to expect inflation (price increases) in the housing market. The effect on the housing market will be:
a. A rise in the demand, causing prices to increaseb. A rise in the supply, causing prices to decrease
c. A decline in the demand, causing prices to decrease
d. None of the above
What will happen if consumers of a good expect the price of the good to decrease in the near future?
If a buyer expects the price of a good to go down in the future, they hold off buying it today, so the demand for that good today decreases. On the other hand, if a buyer expects the price to go up in the future, the demand for the good today increases.What is likely to happen when the price of a good falls?
If the price of a good falls, the quantity demanded of that good increases. The relationship between the quantity demanded and the price of a good when all other influences on buying plans remain the same. Demand is a list of quantities different prices and is illustrated by the demand curve.What happens to a consumer real income when the price falls?
Inferior goods are the goods whose demand rises when consumers's real income decreases and whose demand falls when consumer's real income increases. Hence, increase in consumer's real income will decrease his demand for inferior goods.What happens to the price of a product if the demand for it falls?
Demand Increase: price increases, quantity increases. Demand Decrease: price decreases, quantity decreases. Supply Increase: price decreases, quantity increases. Tải thêm tài liệu liên quan đến nội dung bài viết Which of the following will occur if consumers expect the price of a good to fall in the coming months?