How does quantity of homes supplied change in the long run

Assignment Help Microeconomics
Reference no: EM13180763

1.) Suppose the price elasticity of supply for new homes is 0.25 in the short run and 1.05 in the long run.

a. If the average home price falls from $110,000 to $90,000, what happens to the quantity of new homes supplied in the short run?

b. How does the quantity of homes supplied change in the long run

2.) The market for corn is currently in market equilibrium. Graph this situation. On your graph show what happens to the quantity of corn and the price in the market as the use of ethanol fuels becomes more widespread at the same time that a drought destroys one-third of the corn crop.

Reference no: EM13180763

Questions Cloud

A peanut is burned in a calorimeter made from an aluminum : A peanut is burned in a calorimeter made from an aluminum can. The peanut weighed 0.780 g before combustin and .054 g after combustion. The temperature change of aluminum can filled with 200 ml of water was 15.3. (Density of water = 1.00g/C)
What is the effective interest rate : Barry, a Texas Crude Company engineer who did not take Engineering Economy while studying at Tech, recommended that Texas Crude purchase a special tool to reduce the cost of pumping oil out of the bayous of St. Martin Parish. As a result of Barry'..
Explain what would be the concentrations of acetic acid : What would you expect to happen if you combined 10.0mL of 10^-2 M acetic acid and 5.0mL of 10^-2 M sodium hydroxide? What would be the concentrations of acetic acid and sodium acetate in this solution
Compute the equilibrium constant from an absorbance value : calculate the equilibrium constant from an absorbance value but my professor never told us how to calculate this.
How does quantity of homes supplied change in the long run : The market for corn is currently in market equilibrium. Graph this situation. On your graph show what happens to the quantity of corn and the price in the market as the use of ethanol fuels becomes more widespread at the same time that a drought d..
Explain what is the concentration of the resulting solution : If one pipet volume of each of the following pipets (2, 5, 10 mL) of a 2.56x10-1 M sample are added to a 25 mL volumetric flask and it is filled to the line with water and well mixed, what is the concentration of the resulting solution?
Compute the freezing point of an aqueous solution : Calculate the freezing point of an aqueous solution formed by dissolving 4.22 g of KCl in 25.00 mL of water. Kf for water is -1.86 degrees C/m. Assume the density of water
Limits for countrys ability to catch up with richer nation : Select a nation that has a low per capita income and discuss how the catch-up effect would work for that country. Consider the determinants of productivity and explain some of the things that would tend to prohibit or limit that country's ability ..
Compute the molar mass of an unknown molecular compound : Calculate the molar mass of an unknown molecular compound mixed with solid camphor, C10H6O, heated and then cooled giving the following data. Show all steps in calculation.

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Computing profit maximizing price and output level

Derive the profit maximizing price and the profits at this price. What is the demand elasticity at this price? What is the total demand when the monopolist charges a price P?

  Write you opinion after reading paragraph

If our example patron was a teenager, it's likely the power need that he expressed was a normal teenage reaction to a parent interfering in his life. In additional library visits by his choice, he might reveal himself as achievement motivated. If tha..

  Organization in concept and practice

In some ways monitoring is easier in a partnership than a corporation, where shareholders monitor directors. In what ways is monitoring easier? In what ways is it not?

  Aggregate demand for goods and services

The Aggregate Demand for goods and services in an economy must at every moment equal the value of Real Gross Domestic Product because both are defined to be the sum of (C+I+G+X-IM).

  How a change in minimum wage affects the employment

Minimum wage legislation requires most firms to pay workers no less than the legislated minimum wage per hour. Using marginal productivity theory, explain how a change in minimum wage affects the employment of unskilled labor?

  Imports attractive products for domestic sales

Write an introduction that states the purpose of the document; the name of the fictitious company, its location, and its import strategy; and a summary of the subjects that will be covered in the plan.

  Analyze the makeup and policies of the european union

Analyze the makeup and policies of the European Union and determine if all countries have benefited from their membership (larger vs. smaller countries)

  Level of equilibrium income in the economy

What is the level of equilibrium income in the economy and what is the value of the marginal propensity to expend?

  Construct a budget line for having a family

Indifference theory can explain all rational choices and behavior and try the theoryout on this situation. Suppose the only consideration for couples to have a bby or not was money. If a baby costs $8,000 a year.

  Explain duopoly and monopoly market structures

Explain duopoly and monopoly market structures, and identify the key factors that distinguish them.

  What is the deadweight loss from the quota

What are the losses to U.S. consumers, gains to U.S. producers, and deadweight loss and what quota level would have the equivalent effect on price as the $6 tariff

  Profit maximization in perfectly monopoly markets

Profit maximization in perfectly competitive and monopoly markets requires setting MR = MC - in monopoly markets, firm and market demand curves always have identical slope.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd