When supply decreases and demand is perfectly elastic

Assignment Help Business Economics
Reference no: EM131092928

a. What occurs to price and quantity when supply decreases and demand is perfectly elastic.

b. What occurs to price and quantity when supply increases and demand is perfectly inelastic.

400 Words...........

Reference no: EM131092928

Questions Cloud

Consider the simplified national income model : Consider the simplified national income model: Determine the equilibrium level of national income (Y) and consumption (C) by using the matrix (linear) algebra only. Determine the overall change (comparative statics analysis) of the equilibrium level ..
Demand for its product comes from two types of customers : A firm has estimated that the demand for its product comes from two types of customers, type I and type II. Each type I customer -there are 30 of them- has a demand curve given by Q = 20 - P, while each type II customer -there are 50 of them- has a d..
Disconnection between workplace values and individual values : Discuss how important it is to you that your organization’s workplace values are in accordance with your own values. What are the dangers of a disconnection between workplace values and individual values?
No counteracting fiscal or monetary policy : Explain and show graphically using AD-AS diagrams how each of the following would (separately) affect the economy first in the short run and then in the long run. Assume that Canada is initially operating at its full-employment level of output, that ..
When supply decreases and demand is perfectly elastic : What occurs to price and quantity when supply decreases and demand is perfectly elastic. What occurs to price and quantity when supply increases and demand is perfectly inelastic.
Fiscal decision involves opportunity costs : The United States has accrued a public debt of over $19 trillion over the course of its history, which is equivalent to slightly more than the annual nominal GDP of the nation. Come up with and explain at least two ideas in terms of how to reduce the..
Identify channels of distribution in international market : Identify this company and provide the hot link to its home website. What products does this company offer on a global or international basis? Are there any new products introduced over the past two years or are there products extensions of existing p..
What is matts breakeven price on the option purchased : What is Matt's breakeven price on the option purchased? What is Matt's gross profit and net profit (including premium) if the ending spot rate is $0.6600/AUD? What is Matt's payoff if the spot rate is $0.5550/AUD?
Pay higher wages without laying off workers : Draw labor supply and demand curves for cashiers in Hadley supermarkets. Jeannette Wicks-Lim argues that the minimum wage could be raised without causing significant job loss. Why, in her view, would companies pay higher wages without laying off work..

Reviews

Write a Review

Business Economics Questions & Answers

  Stocks and bonds

Stocks and bonds-and checking accounts are all stores of value, but only checking accounts commonly function as mediums of exchange. and checking accounts are all stores of value and commonly function as mediums of exchange.

  Capture of the regulatory agency

Discuss the capture of the regulatory agency and your prediction as to the capture of the replacement regulatory agency and the politicians in the future.

  Money is spent on medical care for the elderly today

Research shows that much more money is spent on medical care for the elderly today than 50 years ago. What is the likely reason? Do today’s elderly tend to be sicker and more likely to be disabled than in prior years?

  Permanent increase in the production function

If there is a permanent increase in the production function that shifts the aggregate supply curve by 20 units to the right, then so long as there is no change in the expected profit stream of projects, the cost of projects, or uncertainty of the fut..

  Conduct research on the current state of social security

Conduct research on the current state of Social Security. Your 5 page paper should address the following: Explain the concept of Social Security as originally envisioned by President Roosevelt. Evaluate the viability of Social Security within the nex..

  Does this lead to misleading comparison between countries

Goods and services sold in black markets, such as illegal0 drugs, are generally not included in GDP. Does this lead to misleading comparison between countries? Should these activities be included as a positive or negative in GDP?

  The default risk premium on the corporate bonds

A company's 5-year bonds are yielding 9.7% per year. Treasury bonds with the same maturity are yielding 6% per year, and the real risk-free rate (r*) is 2.6%. The average inflation premium is 3%, and the maturity risk premium is estimated to be 0.1(t..

  Difference between demand and quantity demanded

Explain the concept of supply and demand in your own words and provide two examples of how you see it at work: one from the news and one from personal experience. State the difference between demand and quantity demanded, as well as the difference be..

  Efficient means of setting optimal patent life

We suggested above that an annually increasing renewal fee would be an efficient means of setting optimal patent life. Similarly, suppose that owners who wanted to restrict future use of their property had to pay a fee for each year that the restrict..

  Federal reserve decides to stabilize the inflation rate

Suppose the current administration decides to decrease government expenditures as a means to cut the existing government budget deficit. Using a graph of aggregate demand and supply, show what the effect would be in the short run. Describe the effect..

  Deficit nation in a fixed exchange rate system can improve

A deficit nation in a fixed exchange rate system can improve its balance of payments by increasing. One method for a deficit country to correct the situation under a fixed exchange rate system is to. The saving rate in the United States fell to nearl..

  Suppose a market is in equilibrium

Suppose a market is in equilibrium. Then a change occurs and the equilibrium price decreases while the equilibrium quantity increases. What change occurred in the market to cause these changes to price and quantity?

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