Exam 2 If the price of gasoline increases‚ what will be the impact in the market for public transportation? Answer | A. | The demand curve for public transportation shifts to the right. | | B. | The quantity of public transportation demanded increases. | | C. | The demand curve for public transportation shifts to the left. | | D. | The quantity of public transportation demanded increases | A demand curve shows the relationship between Answer | A. | the price of a product and the
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IN THIS CHAPTER YOU WILL . . . Learn the meaning of the elasticity of demand Examine what determines the elasticity of demand Learn the meaning of the elasticity of supply ELASTICITY ITS AND A P P L I C AT I O N Imagine yourself as a Kansas wheat farmer. Because you earn all your income from selling wheat‚ you devote much effort to making your land as productive as it can be. You monitor weather and soil conditions‚ check your fields for pests and disease‚ and study the latest
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for many foods. In the article the supply of grains‚ wheats‚ and soybeans were destroyed by a drought near the Black sea. So the agribusiness division would sell and transport these grains and oilseeds to those who demand it. Of course the demand for these grains from this division would increase because those who were in need of those crops near the Black Sea would turn to the imports of these grain. When the demand for these grains increased so did the demand for the working capital. The companies
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of competitors. Consumers do not have a choice for provision of the product in question. A monopoly can ‘call the shots’ on their product (price‚ availability etc.) as there is no alternative on offer to consumers. Monopolists tend to produce a limited number of product which are then sold at a high price (there is no need to compete). (Control of demand) The British Government seeks to restrict the behaviour of monopolies‚ so preventing unfair business behaviours. Oligopoly – a small number
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countries‚ like the United States‚ Japan‚ China‚ and Canada‚ progress and grow in population‚ more demands for energy and fuel are created. Likewise‚ as less advanced countries bring themselves into the global economy‚ they will also have increased energy and oil demands. So then the question begs‚ where are the resources for these demands coming from and what options will there be for future demands? Given current needs and forecasting the global needs of the future‚ a brief economic analysis will
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Aggregate Demand and Aggregate Supply 11. For each of following events‚ explain the short-run and the long-run effects on the output and the price level‚ assuming policymakers take no action. (a) The stock market declines sharply‚ reducing consumers’ wealth. AS1 AS2 AD1 AD2 Y2 Y1 P1 P2 P3 LRAS A B C P AD-AS diagram Output 0 Since the stock market declines sharply‚ the people’ wealth are being affected. In short run‚ it leads to a fall in aggregate demand which would
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Supply & Demand ● P1 was the market clearing price‚ but then one of determinants of demand changed and D↑ ● P2 is the new market clearing price Surplus & Shortage ● results in a new market clearing price and quantity ● consumers bid up prices that are too low to clear the market ● suppliers put products “on sale” when prices are too high to clear the market Surplus Qs>Qd Shortage Qd>Qs ● when P=P1 the Demand is to purchase Q1 ● but the suppliers are channeling a lot of their goods
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Economic Policy Problem: Demand and Supply The demand and supply of Housing and the Housing affordability in Australia I. Introduction Like all other economies The Australian economy has been affected by the global financial crisis which is now a global economic crisis due the collapse of Lehman Brothers and other financial institutions in US. The consequences of the global economic crisis has been severe and as a result of this the world is in Recession therefore many economies has pushed
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weather can affect food prices Diagram 1 - supply and demand: P = Price Q = Quantity D = Demand S = Supply Q₁‚ P₁ = Original equilibrium Q₂‚ P₂ = New equilibrium Diagram The main factor that I will focus on in this price shift is the weather. That is because the weather is one of the most important factors when it comes to agriculture. As you can see in the diagram above; when the supply decreases there will
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Aggregate Demand and Supply Models Economic Critique Ken Drake‚ ECO 372 Macroeconomics September 10‚ 2012 Jason Foster Aggregate Demand and Supply Models Economic Critique In the United States the economy is currently in a recession‚ although signs are indicating that the economy is slowly recovering. In an effort to analyze the Unites States economy the unemployment rate‚ expectations‚ consumer income‚ and interest rates have been evaluated. The results of these evaluations are included
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