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economics problems

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Question;Which of the following items is likely to have the most price;elastic demand?;Answer;breakfast cereal;table salt;Kellogg?s Corn Flakes;gasoline;If the cost of water used to irrigate orange groves in;California increases, the __________ curve of California oranges;This leads to _________________ in the equilibrium price;for California oranges and ____________ in the equilibrium quantity sold.;Answer;demand, shifts to the right, an increase, an;increase;supply, shifts to the left, an increase, a;decrease;supply, shifts to the right, a decrease, an;increase;demand, shifts to the left, an increase, a;decrease;supply, shifts to the left, a decrease, an;increase;When average consumer income increases from $40,000 to $44,000;in Mapleville, the quantity demanded of widgets went from 10 to 9 units per;capita, even though the price of widgets and other products did not change. The;income elasticity of demand for widgets (using the midpoint method) is;(DO NOT USE SYMBOLS OTHER THAN A DECIMAL POINT OR NEGATIVE SIGN;IN YOUR ANSWER. IF YOU USE A NEGATIVE SIGN, DO NOT LEAVE A SPACE BETWEEN IT AND;THE NUMBER.);Last month Jones Hat Company sold 100 hats at $10 each. This month;it raised the price of hats to $11 and sold 101 hats. This;that;another factor, such as income, changed, shifting the demand curve for hats;to the right.;the;demand curve for hats is upward sloping.;the;law of demand is violated.;another;factor, such as income, changed, shifting the demand curve to the left.;the;supply curve of hats shifted upward.;Jesse sells 400 candles per month at an average price of $5 per;candle. Costs of supplies to produce and sell the candles are $500. Rather than;producing and selling candles, Jesse could be working at a second job earning;$800 per month. What is Jesse's monthly ECONOMIC profit?;(DO NOT USE SYMBOLS OTHER THAN A DECIMAL POINT IN YOUR ANSWER.);se the terms "rising," "falling," or;staying the same" (but without the quotation marks) when filling in;the following blanks.;When the average total cost curve is "U" shaped, the;average total cost curve is (falling);if the marginal cost curve is below it and (rising)if the;marginal cost curve is above it. When average variable cost is minimized;marginal cost is (rising;and when average total cost is minimized, marginal cost is (rising.);Firm XYZ measured its MP of labor curve to be the following;MP = 4000 - 2L;where L is the number of hours of labor hired per day.;XYZ produces gadgets that are sold for $20 each and is able to;hire workers for $10 per hour. How many hours of labor should XYZ hire each day;to maximize its profits?;(DO NOT USE SYMBOLS OTHER THAN A DECIMAL POINT OR NEGATIVE SIGN;IN YOUR ANSWER. IF YOU USE A NEGATIVE SIGN, DO NOT LEAVE A SPACE BETWEEN IT AND;THE NUMBER.)

 

Paper#55908 | Written in 18-Jul-2015

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