QUESTION 6Suppose you are considering two cities, city A with elastic housing supply andcity B with inelastic housing supply. The two cities are otherwise exactlyidentical. Suppose you believe that housing demand in both cities will rise byexactly 20% over the next 3 years. Which city should have a bigger rise inhouse prices at the end of the 3 years holding all else constant?OA. There is not enough information to answer this questionOB. City BOC. Both cities expect the same rise in house pricesOD. City A

The supply of price elasticity is a measurement of the degree of responsiveness of the quantity…

Answered: Suppose you are considering two cities,…

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 11PA

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The price of crude oil increased to its highest level due to conditions which impactedsupply. Historically, crude oil has traded at between 70 and 150 USD per barrel. But theprice increased to over 200 USD in March 2022. Growing demand in Canada for crude tobe turned into refined petroleum, coupled with a sharp fall in production in Saudi Arabiahave both been factors in the price increase. Bauxite production in Saudi Arabia for 2017-18 fell 65% year-on-year due to an agreement with OPEC. The Energy InformationAdministration predicts that global consumption of crude oil is likely to be greater thanproduction by 20 million barrels this year.In the US, companies in the steel and alumina industry have put pressure on the USgovernment to relax import controls, warning that otherwise they might run out of petrol.Commentators predict that most steel and alumina producers will be unaffected becausecrude is such a small part of their spending.a. Explain, using supply and demand analysis, why…
Time left 0:56:44 All of the following except one would increase the amount of a particular model of a Ford automobile that buyers would like to buy. Which is the exception? Select one: O a. an increase in buyers' incomes O b. increased prices of other Ford models an expected future increase in the price Ос. O d. a decrease in the price of steel an increase in the population O e. Next ge eg IMG_7969.jpeg JPEG
The market demand for productXis given by: \[ Q_{d}=6-1 / 2 P \text { or } P d=12-2 Q \] The market supply for goodXis given by: \[ Q_{s}=-14+2 P \text { or } P s=7+1 / 2 Q \] whereP=price per unit andQis number of units. Draw a supply-and-demand graph with these curves. 1.) Using the line drawing tool, draw the supply and demand curves. Properly label your lines. 2.) Using the point drawing tool, plot the equilibrium point. Label your point 'E'. Note: Carefully follow the instructions above and only draw the required objects. The equilibrium price is$and the equilibrium quantity is unit(s). (Enter your responses as integers.) A per-unit excise tax is imposed on suppliers of productX, and the market supply with the tax is now given by: \[ Q_{s}=-19+2 P \text { or } P s=9.50+1 / 2 Q \] Using the graph on the right, show this supply curve. 1.) Using the line drawing tool, draw the new supply curve. Label your line 'S1+tax'.1. Note: Carefully follow the instructions above and only draw…
Oe a short bond paper, do what is indicated in the following items. LOneo the demand function: Qd 50 - 4P. a Construct a demand schedule for the following prices: 1, 2, 3, 4, 5 b Draw the corosponding demand curve and label it as Di. 2 Suppose the demand function in Number I becones Qd = 40 - 4P. a Add the new demand schodulo to the schedule constructed in Number la. b. Draw the new demand curve in the same graph that has been drawn in Number Ib and label it as Da 3. How has the demand curve shiftod? What change in demand is mdicated by the shift?
Suppose that a new drug has been approved to treat a life-threatening disease. Thedemand for that drug is shown on the graph below. Prior to approval of this drug, theonly treatment for this condition was any one of several non-prescription, orover-the-counter, pain relievers. The demand for one brand of the severalnon-prescription pain relievers is also shown on the graph.Demand for the new drug is ________ while demand for one brand of the over-the-counter pain relievers is ________.A) the horizontal line at $60; the line labeled BB) the line labeled B; the line labeled AC) the line labeled A; the line labeled BD) the vertical line at 100; the line labeled A
For each case below, state whether you think the correlation is positive or negative. Also state whether the correlation is due to a direct cause, common underlying cause or a coincidence. a. Correlation between demand for breakfast cereal and demand for bread. The correlation is likely? The correlation is likely due to O a direct cause because an increase in demand for breakfast cereal would likely cause an increase in demand for bread O a common underlying cause that would affect both demand for breakfast cereal and demand for bread O a direct cause because an increase in demand for breakfast cereal would likely cause a decrease in demand for bread O a coincidence because it is unlikely that an increase in demand for breakfast cereal would cause demand for bread to change
The table lists weights (pounds) and highway mileage amounts (mpg) for seven automobiles. Use the sample data to construct a scatterplot. Use the first variable for the x-axis. Based on the scatterplot, what do you conclude about a linear correlation? Weight (lb) Highway (mpg) Which scatterplot below shows the data? O A. 40 20+ 2000 5000 2820 3185 3825 4150 4330 2440 3575 33 32 27 24 23 38 28 Weight (lb) Q B. 40 20++ 2000 . T Q a 5000 Weight (lb) Is there a linear relationship between weight and highway mileage? O A. No, there appears to be a relationship, but it is not linear. O B. Yes, as the weight increases the highway mileage increases. O C. Yes, as the weight increases the highway mileage decreases. C O C. 40- 20+ 2000 5000 Weight (lb) Q O D. 40- 20+ 2000 • 5000 Weight (lb) Q Q ✔
Which of the following is a not a valid reason why economists' consider the computation of a midpoint in elasticity? Because of the instances of market shocks that may change the pattern of a commodity's elasticity. O None of the choices. O O Because there is a need to determine the product-market fit from a historical data. Because changes are prone to one time event that may deviate from the historical data.
An inerease in the demand for gasoline today caused by concerns that gasoline prices will be higher tomorrow is most likely attributable to a change in: consumer preferences. O prices of other goods. consumer expectations. O income.
Using the supply and demand equations given below: Demand Qd = 25 – 2PSupply Qs = 1 + P If the price falls from $8 to $7:a. Compute for the own price arc elasticity of demand. Provide an economic interpretationof your computed value (this is different from what is asked next) and classify the good according tothe type of elasticity. b. Compute for the price elasticity of supply. Provide an economic interpretation of yourcomputed value and classify the good according to the type of elasticity. 1. What is the relationship between total revenue and own-price elasticity of demand? 2. Illustrate a situation when the producer of a good will have a greater tax incidence than a consumer.What does elasticity have to do with tax incidence?
Interest Rate 0 Multiple Choice A BC Quantity Refer to the diagram. Suppose that the demand for loanable funds is D₁ and the supply of loanable funds initially is St. If the demand for loanable funds Increases to Do, the equilibrium interest rate will Multiple Choice O increase from E to F. upply of loly. Refer to the diagram. Suppose that the demand for loanable funds is D₁ and the supply of loanable funds initially is St. If the demand for loanable funds increases to Do, the equilibrium interest rate will increase from E to F increase from F to G. Do decrease from G to F. D₁ increase from A to B
Which of the following is not a potential cause of an increase in the price of housing? Select one: O a. The price of land increases O b. An increase in consumer income O c. Cheaper methods of prefabricating homes are developed O d. An increase in population Oe. Construction workers' wage increase with no offsetting increase in productivity

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