Suppose that the price elasticity of demand for pears

Assignment Help Business Economics

Reference no: EM131006283

Suppose that the price elasticity of demand for pears is -2.0 and the cross elasticity of demand for pears and apples is +0.7. Suppose that labor disputes in Washington cause the price of apples to increase. Which of the following should one expect?

Pear prices to decrease, quantity of pears sold to decrease.

Pear prices to increase, quantity of pears sold to decrease.

Pear prices to decrease, quantity of pears sold to increase.

Pear prices to increase, quantity of pears sold to increase.

Reference no: EM131006283

Questions Cloud

Cause an increase in the supply of good : Which of the following will not cause an increase in the supply of good X? A. a decrease in the price of inputs used to produce good X B. an improvement in the technology used to produce good X C. an increase in the number of firms that produce good ..

What was the straight line interest expense : What was the straight-line interest expense on the December 31 annual income statement?

What bidding experiences have you participated in : In oral or English Auctions, the highest bidder wins but only has to outbid the second highest bidder. Does this concept make sense to you? What bidding experiences have you participated in?

Suppose that the price elasticity of demand for pears : Suppose that the price elasticity of demand for pears is -2.0 and the cross elasticity of demand for pears and apples is +0.7. Suppose that labor disputes in Washington cause the price of apples to increase. Which of the following should one expect?

The supply curve for fluorescent light bulbs : Which of the following would shift out (or shift down or shift right) the supply curve for fluorescent light bulbs?

What is amount of each payment-use the appropriate formula : If you borrowed $24,000 today and you have to pay them back in five equal payments over 10 years (one payment every 2 years). With 8% interest rate compounded annually, what is the amount of each payment? (C=?). Please do not use the chart method. Us..

Considerations regarding measurement of unemployment rates : Explain to your non-economist friends what this means, including considerations regarding the measurement of unemployment rates that can underestimate it. As a group of economic advisors in the campaign of an unnamed presidential candidate, what poli..

About growing equality with income : Why is their a growing disparity between the rich and poor in the US? What are some of the reasons for this and what should the government do to bring about growing equality with income? Do we as citizens have an ethical responsibility to help the po..

User Account

All Pages