€11nn ECON xD when the i QhfW set 1 Grades-J. G Chegg Stul Go Httpsn Q Mark -> O
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€11nn ECON xD when the i QhfW set 1 Grades-J. G Chegg Stul Go Httpsn Q Mark -> O |https://moodle2018coastaledu.rmod/tiview.php?id-177673 Recycle ECON101-E1 Survey of Economics FA18 James Larg Homework: Chapter 4 My Econ Lab Assignment Score: 0 of 1 pt 4.2-69 3D Vis Photo V 36 of 46 (41 complete) Hw HP Des 2600 Wheat is used to produce cereal When the price of wheat falls, the A. demand for cereal decreases O B. demand for wheat increases . demand for cereal increases O D. supply of wheat decreases E. supply of cereal ncreases Chro Edg Click to select your answer and then click Check Answer All parts showing Clear All 0 Type here to search eaaExplanation / Answer
4.2-69 Option E, as the price of input falls the supply of the good increases
4.2-79 Option A as the price increases supply increases
A1. Market equilibrium price is $4 and equilibrium quantity is 2000 a day as supply equals demand
A2. Option B, because of the increased price the supply increases and demand reduces and hence the price falls
A4
P
Qd
Qs
Qd1
Qs1
2
2500
1500
4000
2000
2.5
2000
2000
3500
2500
3
1500
2500
3000
3000
3.5
1000
3000
2500
3500
4
500
3500
2000
4000
New equilibrium price is 3 and the quantity is 3000 a day
P
Qd
Qs
Qd1
Qs1
2
2500
1500
4000
2000
2.5
2000
2000
3500
2500
3
1500
2500
3000
3000
3.5
1000
3000
2500
3500
4
500
3500
2000
4000
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