Suppose the federal minimum wage decreases in the United States. What effect does this have on the consumption function in the United States? O Movement up and to the right alon Upward shift Movement down and to the left along Downward shift
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- Suppose you observed that the consumption of organges increased sharply last year, however thet total consumer expenditure on oranges did not change. Did a supply shift, demand shift or both cause this? explain using graphsLast year, 1000 galions of almond milk (a non dairy product) were sold ata price of $10 Yet, this year, a bad harvest in Caifomia has wiped outa significant part of the aimond harvest. At the same tme, a larger number of people are looking to shift away from dairy products towards non-dairy atematives. Because of these two changee. O. the equilibrum price will increase and change in the equlbrum quantity is unambiguous O. he equtibrium price will decrease but change in the equilbrum quantity is ambiguous O. he change in the equiibrium price is ambiguous, but the equilbrium quantty wil increase O. he equiibrium price will increase but change in the equilbrum quantity is ambiguousTable 4.6 shows the amount of savings and barrowing in a market for loans lo purchase homes, measured in millions of dollars, at various interest rates. What is the equilibrium interest rate and quantity in the capital financial market? How can you tell? Now, imagine that because of a shift in the perceptions of foreign investors, the supply curve shifts so that there will be 10 million less supplied at every interest rate. Calculate the new equilibrium interest rate and quantity, and explain why the direction of the interest tale shift makes intuitive sense.
- In the financial market, what causes a movement along the demand curve? What causes a shift in the demand curve?Last year, 1000 galions of almond milk (a non-dairy product) were sold at a price of $10 Yet, this year, a bad harvest in Califomia has wiped out a significant part of the aimond harvest At the same tme, a larger number of people are looking to shift away from dairy products towards non-dairy atematives. Because of these two changee, O the equilbrum price will increase and change in the equlbrum quantity is unambiguous O he equtibrium price will decrease but change in the equilbrum quantity is ambiguous O he change in the equiibrium price is ambiguous, but the equilbrium quantty wil increase O he equiibrium price will increase but change in the equilbrum quantity is ambiguousIf Larry Page, one of the cofounders of Google, spends $100,000 on the new Tesla electric vehicle because he has an optimistic view of the future, then: O income in the economy increases by $1,000,000, if the MPC is 0.8. O income in the economy increases by $500.000, if the MPC is 0.9. O Income in the economy increases by $400,000, If the MPC is 0.75. O income in the economy increases by $300,000, if the MPC is 0.5.
- ciples of Macroeconomics || Fall20 1 What does the PPI measure? ed Select one: d out of O a the average change in the prices paid for all goods produced in the economy over a given year O b. the level of production of goods and services generated in the economy in a given year question O c. the difference between the prices consumers pay for goods and services and the prices producers pay for O d. the average of the prices received by producers of goods and services at all stages of the production pro Ti navigation Type here to searchsuppose the price of orange juice rises and the apples falls. what would you expect ti happen to the price and quantity of apple juice? why would the equilibrum quanity increase while the impact onbthe equilbrum price be uncertain?use tne grapn input tooi to neip you answer tne roilowing questions. You will not be gradea on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Florida Oranges 50 46 Supply IPrice (Dollars per box) Quantity 20 40 35 Quantity Supplied (Millions of Бохes) 30 480 320 Demanded (Millions of boxes) 25 20 15 Demand 10 O 80 160 240 320 400 480 GEO 640 720 B00 QUANTITY (Millions of baxes) In this market, the equilibrium price is $ per box, and the equilibrium quantity of oranges is million boxes. For each price listed in the following table, determine the quantity of oranges demanded, the quantity of oranges supplied, and the direction of pressure exerted on prices in the absence of any price controls. Price (Dollars per box) Quantity Demanded (Millions of boxes) Quantity Supplied (Millions of boxes) Shortage or Surplus Pressure on Prices 35 15 True…
- ven the following linear functions describing the supply and demand for widgets: na, using the algebraic methods explained in the lesson, the equilibrium price ) Cony substituting the equilibrium price into the original functions, calculate the equilibrium quantity rconirm your results by completing a supply and demand schedule and by graphing the supply and demand curves, being sure to mark in the equilibrium price and quantity on the axes. Qs = -4 + 2P Qd = 24 - 2P a) Equiibrium price : as- Qd Qs =-4+2x7=10 Qd - 24-14= 10 %3D -4+ap= 24-2P -4P=-28 P=7 Qs = -4 + 2P lo Price ($) Qd 24 - 2P 8. 10 10 2. Equaibrium at (7,10) 123456189 10 PriceIn 2018, a cold front in Barbados increased both the demand for water heaters andgasolines. The usage of gasoline was 581 tonnes, an increase from 499 tonnes in theprevious year. The Petroleum Company of Barbados advised Government officials thatdemand could outweigh supply and asked companies to increase the supply. They alsoasked major gasoline users, such as power plants, to reduce demand. Illustrate the effect of the cold front on the demand for gasoline using a demandcurve diagram over the two years.Use the following information toanswer the questions belowComputers:Soybeans:Total revenue =Total120revenue = 120Payments to labor =60Paymentsto labor = 80Payments to capital =60Paymentsto land = 40Holding the price of computersconstant, suppose the price ofsoybeans rises 10% and that the wagerate increases 5%.a. What is the effect of these changeson the rental rate of capital?b. What is the effect of these changeson the rental rate of land?
