15. Consider the U.S market for almonds. Farmers in Calfornia, that grow most of
ID: 1141529 • Letter: 1
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15. Consider the U.S market for almonds. Farmers in Calfornia, that grow most of the nation's urthermore, assume almond crop, have adopted a new and highly effective irrigation technique. F pecans and almonds are substitutes in Georgia, the leading producer of pecans in U.S., has experienced large pecan crop losses due to the weather. What will likely happen in the market for almonds with the equilibrium price and quantity? A. Equilibrium price decreases and equilibrium quantity increases. B. Equilibrium price increases and equilibrium quantity decreases. C. Equilibrium price is ambiguous while equilibrium quantity increases. D. Both equilibrium price and quantity are ambiguous. E. Equilibrium price increases while equilibrium quantity is ambiguous 16. Suppose that Bitcoin and Dogecoin are cryptocurrency substitutes. An increase in the supply of Dogecoins, everything else held constant, will cause in the Bitcoin market A. an increase in both the equilibrium price and quantity. B. a decrease in both the equilibrium price and quantity. C. no change. D. an increase in the equilibrium price and a decrease in equilibrium quantity E. a decrease in the equilibrium price and an increase in the equilibrium quantity 17. You have a comparative advantage in producing something whenever A. you enjoy producing that good. B. your opportunity cost is lower than that of other producers. C. your opportunity cost is constant. D. you can produce more of it using the same quantity of resources E. you have specific training in the production of that good 18. Which of the following will cause a movement along a good's supply curve? A. an increase in the price of an input B. more firms enter the market C. the production process of the good becomes more efficient D. the price of the good increases E. the government provides a subsidy to the producers of the goodExplanation / Answer
15.Option C is correct :- equilibrium price is ambiguous and equilibrium quantity increases.
Explanation:- when the pecan crop losses, the demand of almonds increases . It would lead to increase or decrease in price and increase in supply of quantity in the market.
16. Option B is correct decrease in both equilibrium price and quantity of bitcoin.
Explanation:- increase in supply of dogecoin will lead in decrease in demand of bitcoin.
17. Option B is correct your opportunity cost lower than that of of other producer.
Explanation:- product which has a less opputunity cost compare to other product hence the producer has comparative advantage in that product which has less opportunity cost.
18. option D is the correct. The price of good increases
Explanation:- anything outside the model like technology change , tax , subsidy etc causes shift in supply curve, wheras, any indigenous or inside activity causes movement along the curve such as increase in price or quantity.
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