Oc The derived demand curve for aresource:is downward sloping because consumersbuy more of goods that become moreexpensive when resource costs are high,all other things remaining constant.is downward sloping because an increasein the price of the resource causesproducers to use substitute resources, allother things remaining constant.shows a positive relationship betweenthe opportunity cost of using theresource and the amount demanded ofthe resource, all other things remainingconstant.shows a positive relationship betweenthe price of the resource and the amountdemanded of the resource, all otherthings remaining constant.

The derived demand curve for the resource explains that when the price of the resource is increase…

Answered: The derived demand curve for a…

The derived demand curve for a resource: is downward sloping because consumers buy more of goods that become more expensive when resource costs are high, all other things remaining constant.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 6SCQ: A firms marginal cost curve above the average variable cost curve is equal to the films individual...

See similar textbooks

Related questions

Q: How is it necessary for a nation with a fixed exchange rate and open financial markets to renounce…

A: The rate about which one currency will be swapped for another is known as the exchange rate. The…

Q: Emphasize the answers with a double rule. I. Philippines is one of countries which is considered as…

A: Given At the price of 2550, the quantity demanded is 100 sacks of rice At a price of 2000, the…

Q: 1) A monopoly faces a demand curve P(Q) = 120 – 2Q, and has a marginal cost of 60. a. What is…

A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…

Q: Firms Markets for Goods and Services Markets for Factors of Production Based on this model,…

A: The circular-flow diagram is a graphical representation of the flows of goods/services and money…

Q: 3. Suppose that the parents of a young child decide to make annual deposits into a savings account,…

A: Annuity is defined as the series of annual payment that are paid or received at beginning or at the…

Q: business cycle:

A: ANSWER: The correct option is (d) Stage 1 and 4 Explain:- The four business…

Q: oney does not include _________________________ Checks against checking accounts. Debit cards.…

A: Money refers to the means of paying for something or buying something using coins or notes

Q: Consider a small open economy given by the following: Consumption Function: Ct = 17.2 + 0.7(Yd)t…

A: 1. In this case, IS curve is actually shows the investment and savings combination that means set of…

Q: I. Philippines is one of countries which is considered as large producer of rice in Southeast Asia.…

A: Introduction Supply refers to the quantity of a good offered for sale at various price level during…

Q: According to Professor Kosmos, the demand for hot chocolate from the university café has the…

A: According to the question, it is given that : The demand for hot chocolate from the university…

Q: If Boblandia had a flexible (floating) exchange rate, it would cost 5 Bobos to purchase a Canadian…

A: Exchange rate is the rate at which two nation currencies are exchanged and which is determined by…

Q: Which range of aggregate supply would represent an economy where prices are rising as output…

A: According to the classical economics, aggregate supply curve is the curve that represents total…

Q: Problem Solving: Copy the questions and analyze the following demand problem. Emphasize the answers…

A: The supply function is given as a relationship between the price and the quantity supplied at given…

Q: Despite providing the benefit of employment flexibility in some economies, a sizable informal sector…

A: An economy is a network of interconnected production and consuming activities that ultimately…

Q: ollowing the end of WW2 (1945) , the US economy entered a golden age. The American economy boomed in…

A: In the aggregate demand- aggregate supply model, equilibrium occurs where the aggregate demand curve…

Q: part-d: Now suppose history had taken an alternative turn following the Great Depression. Suppose…

Q: Assume the inverse demand in a market can be represented by P = 100 – Q; and the marginal cost can…

A: Monopoly is single firm in the market. Monopoly firm produces where the MR=MC.

Q: A firm in a competitive industry has the following cost function: c(y) = y3/3-20y2 +310y. (Note that…

A: A cost function is a function of input costs and output amount whose value is the cost of making…

Q: Older Workers are A much more likely to migrate than younger workers because older workers have…

A: There are a number of reasons for the migration of people but the primary reason is economic. It is…

Q: With the help of appropriate diagrams, explain how a tax can be used to reduce the consumption of a…

A: Tax are contribution to goverment which are levied on individual as well as or a firm which are…

Q: As an employer, you can minimize discrimination based on implicit bias when hiring employees if you…

A: Many companies desire to foster an inclusive culture, but could unconscious bias be getting in the…

Q: When there are fixed costs and a constant marginal cost O a. The average variable cost function is…

A: The cost function shows the relationship between cost and output.

Q: Explain the circumstances under which the Marginal Product of Labour diminishes. What are the…

A: Since multiple questions have been posted, we will answer the first question for you. If you want…

Q: When shifts occur to the short-run AS there is no self-correcting mechanism that will restore…

A: According to the idea of the short run, at least one input will be fixed while the others will be…

Q: If the unemployment rate is falling from 4 to 3%, while the inflation rate is increasing from 2% to…

A: Monetary Policy is the process of implementing certain policies that influence the money supply in…

Q: PROBLEM 1. 4 The following table represents the production costs for a single firm in the short run.…

A: We have given Q FC VC TC MC AVC ATC 0 24 3 18 5 12 8…

Q: Changes in real values can only be caused by quantity changes. Select one: True False

A: The real value does not include price effects or variables are adjusted for inflation to reach the…

Q: Consider the steady state of the Solow model with population growth and technological progress. (a)…

A: Since the question you have posted consists of multiple parts, we will answer the first three parts…

Q: did you get 0.2Y?

A: The aggregate expenditure is the sum total of consumption, investment, government expenditures.

Q: I needed explanation

A: The globalization refers to the process of global integration, which includes the exchange of goods,…

Q: Req#2: Use Aw analysis to find the best alternative for your company starting one of the following…

A: Annual worth analysis: We have given the first cost and annual revenue cost structure for 4…

Q: If the nominal interest rate is 8% and the inflation rate is 5%. Using the relevant real interest…

A: Given that, Nominal interest rate = 8% or 0.08 Inflation rate = 5% or 0.05 Present value (PV) =…

Q: d. Solve for the price suppliers are willing to sell if production is at 1,000 units? e. What is the…

A: We have given the supply schedule of rice. We have to solve subparts d,e, and f so from the first…

Q: Illustrate and explain how the short-run supply curve of a price-taking firm is determined.

Q: Assume that the short-run total cost function of an entrepreneur is C = q³-10q² + 17q+66. If p = 5,…

A: Both fixed costs (which remain constant regardless of how much the final results change) and…

Q: Consider the lottery that assigns a probability r of obtaining a level of consumption CH and a…

A: Risk premium is the amount which a consumer is willing to pay in order to avoid a risky event. RP =…

Q: Which of the following equations is correct? i. AFC + AVC = ATC ii. AVC - ATC = AFC iii. ATC + AVC =…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: Economics Assess the following statements whether are true or false? Justify your answer making…

A: The phrase "policymakers" refers to all the experts who are in responsible for preparing specific…

Q: Please answer fast

A: Given, Autonomous consumer spending = $200 billion. Autonomous investment spending = $100 billion.…

Q: What is the role of historical accident for the pattern of specialization and trade in industries…

Q: II. PROBLEM SOLVING Lino Batumbakal is now exploring the option to start selling beef wellington. He…

A: Demand function is an inverse relation between price and quantity , whereas a supply function is a…

Q: Choice DRUMS A B C D E 30 25 20 15 10 5 0 0 On the following graph, use the blue points (circle…

A: Opportunity cost refers to the sacrifice of the second best alternative when one particular…

Q: 3 (Chapter 7 Costs) The firms cost curve is c(y) = 10y² + 1000. For which output quantity the…

A: Cost curve shows the relationship between the output and cost of production. The average cost of…

Q: Suppose the MP curve is given by r = 1+0.5π, and the IS curve is given by Y = 18 − 3r. a. Derive…

A: The IS curve is downwards sloping to the right which indicates to the fact that the rate of…

Q: 5. Start saving for retirement immediately! Even a modest amount will add up in a hurry. Jay decides…

A: Above problem is a good example of annuity payments with geometric gradient , where Annual Payment…

Q: 3. Efficiency in the produ Suppose Germany produces only two goods: wheat and cars. The following…

A: A production possibilities frontier (PPF) depicts the combination of two goods that a nation can…

Q: Explain the income and substitution effects of a price increase for a normal good. III

A: The normal good refers to the good which is positively connected to the income level. A rise in the…

Q: (a) There are two companies in the world that produce large passenger aircraft, Boeing, and Airbus.…

A: The market is a location where the transaction of services and commodities takes place. It is…

Q: Which of the following might best explain Medicare's interest in making bundled payments by episode?…

A: In bundled installment arrangements, the propelling power to avoid these patients is feeling better,…

Q: A sales tax is imposed on the market for good H. Refer to the demand curve before the sales tax is…

A: The initial demand and supply curves are D1 and S respectively. Equilibrium in the market occurs at…

Question

The derived demand curve for a
resource:
is downward sloping because consumers
buy more of goods that become more
expensive when resource costs are high,
all other things remaining constant.
is downward sloping because an increase
in the price of the resource causes
producers to use substitute resources, all
other things remaining constant.
shows a positive relationship between
the opportunity cost of using the
resource and the amount demanded of
the resource, all other things remaining
constant.
shows a positive relationship between
the price of the resource and the amount
demanded of the resource, all other
things remaining constant.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Understanding the problem

VIEW

Final Answer

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

(a) Explain with the help of a graph the effect of an increase in the relative price of a labor-intensive good on input choice. (b) “Generally, an economy will tend to be relatively effective atproducing goods that are intensive in the factors with which the country is relatively wellendowed.” Explain the above statement with the help of a graph.
1990s and early 2000s saw a crisis for sugarcane producers. During this period, thequantity supplied of sugarcane outweighed quantity demanded and the market was inturmoil. Over time the price of sugarcane recovered after 2014, peaking in July 2018. In part, thiswas due to farmers diversifying into other crops; in part, it was due to buoyant globaldemand for alternate products. In 2019, however, a combination of good harvests and afall in fertilizer sugarcane prices caused supply to increase substantially. Althoughdemand was still growing in developing countries, the onset of recession in developedcountries was halting the growth in demand. a. Illustrate and explain how the market for sugarcane will maintain equilibriumover time given the problem that exists in the late 1990s and early 2000s. b. Is demand for sugar cane price elastic or price inelastic? Explain yourreasoning. c. Illustrate and explain (i) how the sugar cane market changed during the period2014 – 2018 and (ii) what…
1990s and early 2000s saw a crisis for sugarcane producers. During this period, thequantity supplied of sugarcane outweighed quantity demanded and the market was inturmoil. Over time the price of sugarcane recovered after 2014, peaking in July 2018. In part, thiswas due to farmers diversifying into other crops; in part, it was due to buoyant globaldemand for alternate products. In 2019, however, a combination of good harvests and afall in fertilizer sugarcane prices caused supply to increase substantially. Althoughdemand was still growing in developing countries, the onset of recession in developedcountries was halting the growth in demand. a. Explain how revenue for sugar cane would have been impacted in July 2018relative to the early 2000s.
The efficiency factor Select one: O ameans resources are used in the least costly way (productive efficiency O b. Means an achieving productive efficlency cmeans resources are used to produce the mix of products most wanted by society dA and A|| of the above
Marginal cost is the one more unit of a good and opportunity cost of producing increases as production O price that must be paid to consume; decreases as consumption O opportunity cost of producing: decreases as production O price that must be paid to consume; increases as consumption of the good increases.
86) An economy unit of agricutural output raquires 0.L'unit of ag ristural input and agriultural industy and a teatile industry. Each has 9n 0.1 unit of textiles inputs. Each unit of textiles output requires o.1 unit of agricul tural imput and 0:2 unlt of textiles input. a Write the technoligy matrix for this b) If surpluses of S units of agrlualhural products and15 units of texti le s ave desired, final the gois poluchion of each industry econdny. .
Why is a production possibilities frontier typically drawn as a curve, rather than a straight line?
Suppose Alphonsos town raises the price of bus tickets from 0.50 to 1 and file price of burgers rises from 2 to 4. Why is file opportunity cost of bus tickets unchanged? Suppose Alphonsns weekly spending money increases from 10 to 20. How is his budget constraint affected from all three changes? Explain.
Explain the term resource in economics
Consider the production problem discussed in class in which 24 labor hours and 4 machinehours are to be allocated between food (x) production and wine (y) production. Suppose theproduction functions for x and y are as follows:Also, suppose the preferences of the agents are given by:Finally, suppose the MRT is given bywhere x and y denote, respectively, the aggregate quantities of food and wine produced.For each of the following allocations, determine whether they are (i) feasible and (ii) Paretoefficient. If they are inefficient, explain intuitively how it is possible to make someone betteroff without making the other person worse-off.a. ((14,2),(10,2),(5,10),(23,18))b. ((8,2),(16,2),(5,14),(11,18))c. ((14,2),(10,2),(14,21),(14,7))
For the EUAW Select one: a. Both of above O b. Output is positive and input is negative c. Input is negative and output is positive
According to Alan Krueger, drivers who partner with Uber appear to be attracted to the platform in large part because O the level of compensation O the fact that earnings per hour do not vary much with hours worked, which facilitates part-time and variable hours of the flexibility it offers O all answers are correct