Q: TARGET MARKET for IKEA write at least 100 words b. market wants (psychographic/lifestyle)
A: A market is a place where people, such as buyers and sellers, exchange goods and services to meet…
Q: what are some other things that the Coke employees who sold the secret recipe to Pepsi should have…
A: Economist always make decisions under rationality. Because rationality gives them better choice and…
Q: npare the alternatives shown on the basis of their capitalized costs using a MARR of ernative t…
A: Answer given below,
Q: MC $22 ATC 18 16 AVC 14 D = AR 11 MR Q 12 17 22 Based on the above graph for a monopolist, at the…
A:
Q: In a Cournot model, firms Go and Stop compete by producing good X. Demand is X = 50 - 0.5P, where P…
A: We have given Demand: P=50-0.5X TC =0 for both firm If firm Go produces X1 and firm stop produces…
Q: "Abu Dhabi munidipality is considering buying a truck to help maintain its highways for a very long…
A: Given: Annual Equivalent Costs: Alternative A: $10000 Alternative B: $13000
Q: nanufacturer of hospital supplies has a uniform annual demand for 180,000 boxes of bandages. It…
A: Supply and demand represent the working of a market and the cooperation among providers and…
Q: Q. A2: Cross-country disparity in per capita income and transitional growth rates in Solow (1956):…
A: Solow model illustrates the steady growth in the long run period without any pitfalls. It is also…
Q: Why do concentrated groups often tend to obtain more protection than wider spread groups?
A: In an economy, the government action is primarily based on the improvement in the overall social…
Q: Ifit is said that the economic life of a challenger is four years it means that_ Oathe payback…
A: The estimated span of time during which an item will be useful to the typical owner is known as its…
Q: why is banking important to the economy? and why do banks need to be regulated?
A: Banks are government Authorised, here people can put their money safely and also banks provide loans…
Q: Nicanor's passion is good wine. If the prices of the other goods are constant, Nicanor's demand for…
A: Substitution effect refers to that component of change in demand of a good which is not a…
Q: A government has 15 trillion in debt (B). The real interest rate (r) is 6% . If the government…
A: The correct answer is given in the second step.
Q: In the graph above, if the maximum price is set at P1, what area(s) represent consumer surplus after…
A: In the graph above, if the maximum price is set at P1, what area(s) represent consumer surplus after…
Q: The federal government buys $20 million worth of computers from Dell. If the MPC is 0.60, what will…
A: Given MPC=0.60 Federal government buys $20 million worth of computers Therefore government…
Q: When focused on the youngest age group, a 20% increase in medical spending is associated with:…
A: Elasticity of health with respect to medical spending measures the responsiveness in health…
Q: Discuss the ten reasons why agriculture is important.
A: The human civilization started with agriculture and even in present times, it places an important…
Q: Question 7 for th below two machines and based on CC analysis which machine we should select?…
A: Given; First cost= $26816 Annual cost= $10052 Salvage cost= $7881 Life= 3 years
Q: Suppose a movie theater determines that the elasticity of demand for movie tickets is -2.0 for…
A: Learner's index is a measure to estimate the market power of a firm to charge price greater than…
Q: According to economists what is the optimal amount of pollution? O a. The optimal amount of…
A: Pollution creates negative externality to people. It puts external cost on people who are not…
Q: Consider a duopoly market, where two firms sell differentiated products, which are imperfect…
A: A duopoly is what is going on where two organizations together own everything, or virtually all, of…
Q: of 3 ZOOM 3. Draw a graph with an indifference curve and a budget line for two goods, movies…
A: Indifference curves are defiend as the locus of all the points with equal level of satisfaction.Some…
Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…
A: Answer: Long-run average total cost: it is the smallest short-run average cost to produce a…
Q: How would the long-run equilibrium output change if new natural resource (energy) was discovered?…
A: Natural resources are the raw materials that are used by the business organizations in order to…
Q: Following the economic boom in Australia in 2004, the Reserve Bank and the government adopted a…
A:
Q: able 11-6 Quantity of workers Quantity of foot massages per day Fixed cost Variable cost Total…
A: We have per day fixed cost of message booth..
Q: One of the important contributions of behavioral economics is the focus on how people make decisions…
A: Behavioural economics is related to psychology which combines element of economics that how and why…
Q: A certain simple economy has two sectors: work and play. To produce $1 of work requires $0.7 of work…
A: Most economic decision-making involves the concept of opportunity cost. Basically, what is given up…
Q: Q#13) The former Tea Party and Trump factions with the Republican Party would like…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 1. Rhodies Road Bikes are at it again... This time they're building light weight alloy frames. The…
A: A cost is basically the worth of money that has been spent to create something or supply a service…
Q: Which of the following statements about Type I and Type II errors is correct: a Type I: Do not…
A: Null hypothesis is a hypothesis that says there is no significant difference in a set of…
Q: Okun's law describes the_long-run v relationship between the unemployment rate and the growth rate…
A: Okun’s law states the long-run relationship between unemployment and real GDP growth rate. If a…
Q: 1
A: The IS curve shows the negative relationship between interest rate and output. It means as the…
Q: Let us define Free agency as a professional athlete who is not under contract and is free to auction…
A: A free agent in professional sports is a player who is not under contract to any single organisation…
Q: Inventories growing happens when A) The economy is at equilibrium In a economic contraction phase In…
A: Inventory refers to all of a company's commodities, products, items, and materials that are retained…
Q: Which of the following is not included in the computation of the consumption component of gross…
A: The consumption function does include spending on durable and nondurable goods, and services in the…
Q: My utility function for apples (a) and bananas (b) is U(a,b) = a x b + b + 45. What would I most…
A: We have Utility function: U(a,b)=a×b+b+45 .... (1)
Q: what problem could arise with consumers' net demand functions as any price becomes zero? what axiom…
A: Consumer Theory It states that as a commodity is consumed more and more, people derive less and less…
Q: Suppose the current spot exchange rate for the Chinese yuan is USD 0.15 per CNY. If the domestic…
A: Given, Current spot exchange rate for the Chinese yuan is USD 0.15 per CNY. Domestic prices of…
Q: Administration costs make small loans less profitable for banks than large ones, other things equal.…
A: Loan is the amount of money offered by Banking as well as non banking financial institution in…
Q: Answer the following options Q#9) What has been true about the long term growth rate and growth…
A: GDP is the monetary worth of all products and services generated inside a country's borders in a…
Q: Which of the followiing is true in a perfectly competitive market? Select one: Oa A large number of…
A: There are different types of markets and they are classified ok the basis of their characteristics…
Q: H6. a. what is the present value of a two year income stream $10,000 in year 1 and $10,000 in year 2…
A: Present Value refers to the value of a series of income streams or series of cash payments…
Q: A hair salon is considering hiring more workers. The market wage for a hair stylist is $160 per day,…
A: The cost of providing the salon service is the wage rate per labour $160 per day . And the revenue…
Q: When taxes in a market are extremely high, increasing the tax rate will likely tax revenue and dead…
A: When tax is imposed on the good, the quantity traded in the market decreases because the price gets…
Q: Between 2017 and 2018, the CSPI increased by |. Between 2018 and 2019, the CSPI increased by Which…
A: Inflation is a steady rise price of goods and services. Inflation is usually measured by an index…
Q: The table shows sales information for the firms in three different markets. Use the…
A: Herfindahl- Hirschman index is used to measure the concentration level of the market. Higher the…
Q: Note: Plot your points in the order in which you would like them connected. Line segments will…
A: Following formula has been used to complete the table Marginal cost = (change in total cost / change…
Q: Which one of the following models emphasizes on liberty and free choice? The American model…
A: There are different models to be used to explain the specfiic situation of the economy in terms of…
Q: The figure below shows a monopolistically competitive market for a fictional brand of shampoo called…
A: In a monopolistic competitive market, profit is maximised at a point where marginal revenue is equal…
How would the long-run equilibrium output change if the
Decrease, Increase or No change?
Step by step
Solved in 2 steps with 1 images
- In the short run, the quantity of output supplied by firms can deviate from the natural level of output if the actual price level deviates from the expected price level in the economy. A number of theories explain reasons why this might happen. For example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. Consider a soybean farmer who expects a price level of 100 in the coming year. If the actual price level turns out to be 90, soybean prices will (decrease/not change/increase) , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by (raising/lowering) the quantity of soybeans supplied. If other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to (fall short of/exceed) the…Suppose that the U.S. economy is at full employment when strong economic growth in Asia increases the demand for U.S.-produced goods and services. How the U.S. price level and real GDP will change in the short run?In the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. Several theories explain how this might happen. For example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. Consider a soybean farmer who expects a price level of 100 in the coming year. If the actual price level turns out to be 90, soybean prices will(FALL, RISE, OR REMAIN THE SAME) , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by (REDUCING OR INCREASING) the quantity of soybeans supplied. If other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to (RISE ABOVE OR FALL BELOW)…
- In the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. Several theories explain how this might happen. For example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. Consider a soybean farmer who expects a price level of 100 in the coming year. If the actual price level turns out to be 90, soybean prices will and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by the quantity of soybeans supplied. If other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to the natural level of output in the short run.The uncertainty surrounding the COVID-19 pandemic led firms to reduce their desired investment in 2020. What are the short-run and long run effects on the equilibrium price and output levels? Please explain in words.In the long- run, the level of output is independent of the price level * True O False
- The short-run quantity of output supplied by firms will exceed the natural level of output when the actual price level ———-that people expected.The Greek letter a represents a number that determines how much output responds to unexpected changes in the price level. In this case, assume that a = $2 billion. That is, when the actual price level exceeds the expected price level by 1, the quantity of output supplied will exceed the natural level of output by $2 billion. Suppose the natural level of output is $60 billion of real GDP and that people expect a price level of 95. On the following graph, use the purple line (diamond symbol) to plot this economy's long-run aggregate supply (LRAS) curve. Then use the orange line segments (square symbol) to plot the economy's short-run aggregate supply (AS) curve at each of the following price levels: 85, 90, 95, 100, and 105. PRICE LEVEL 125 120 115 110 105 100 95 90 85 80 75 0 10 20 40 50 60 70 30 OUTPUT (Billions of dollars) 80 90 100 O AS LRAS ? The short-run quantity of output supplied by firms will fall short of the natural level of output when the actual price level level that…Suppose that M = 2000 and that k = 2. What is the price level P at which the economy is in long-run- equilibrium? Plot such an equilibrium on a diagram with P on the vertical axis and Y on the horizontal axis, by distinguishing between the short-run and the long-run equilibrium.
- Which of the figures above illustrates an economy in long-run equilibrium? A) Figure A B) Figure B C) Figure CThe following events have occurred in the history of the United States: A deep recession hits the world economy. The world oil price rises sharply. U.S. businesses expect future profits to fall. Explain the combined effects of these events on U.S. real GDP and the price level,starting from a position of long-run equilibrium.Explain why demand policies can only reduce unemployment below the natural rate in the short-run.