Given the global events, what will be the expected change in the quantity of soy

Question

Given the global events, what will be the expected change in the quantity of soybean oil purchased in the market? A 1.2% decrease in the quantity traded. A 1.2% increase in the quantity traded. A 5.33% decrease in the quantity traded. A 5.33% increase in the quantity traded. What will be the expected change in the quantity of canola oil traded in the market? An 8.4% decrease in the quantity traded. An 8.4% increase in the quantity traded. A 7.6% decrease in the quantity traded. A 7.6% increase in the quantity traded. From the data/information provided, what can you determine about soybean oil? The demand for soybean oil is elastic. Soybean oil and canola oil are complements. Soybean oil is an inferior good. None of the above are true. Suppose that the cross-price elasticity of demand for Gatorade sports drinks with respect to the price of Coca-Cola soft drinks is +0.50. If the price of Coca-Cola increased by 20%, then the quantity demanded of Gatorade would_because Gatorade and Coca-Cola are considered_. Decrease by 40%, complements. Decrease by 10%, substitutes. Increase by 40%, complements. Increase by 10%, substitutes. Assume that in the previous decade, economists estimated that the cross-price elasticity between the quantity demanded of bananas and the price of frozen strawberries was +0.25. Today, the relationships between commodities in the fruit market are changing and the new cross-price elasticity between bananas and the price of frozen strawberries is -0.60. This would imply that, compared to the shift caused by the old estimate of +0.25, an increase in the price of frozen strawberries would now lead to what type of shift in the demand for bananas? A bigger shift in the same direction. A bigger shift, but in the opposite direction. A smaller shift in the same direction. A smaller shift, but in the opposite direction.

Explanation / Answer

3) Quantitative details are not available.

4) Quantitative details are not available.

5) Quantitative details are not available.

6) Given Cross price Elasticity of demand between gatorade sports drink with the price of Coca Coala is +0.50

In case of Complementary goods, the Cross elasticity between price and demand is Inverse where as in the case of Subsitutes, the relation ship between the Price and Demand is Positive.

In the Given case we can say that both the gatorade sports drink and cocacola are substitutes, So that the relation is positive, So if the Price for Coca Cola increases by 20 % then the Quantity demanded for gatorade sports drink will also increase by (20%*0.5) 10%.

So answer is Option D

7) Given that in previous Decade, Cross Elasticity ofa Demand between Bananas and Frzoen Strawberries was+0.25. also Due to change in matket conditionsithas benn changed to the -0.60.

Since the Elstcity has been changed from positive to negative which means ,The people treated the Bananas adn Strawberries as Substitutes ,But now they is was vice versa because the elasticity is negative. So an increase in the price of frozen results in bigger shift in the opposite direction .

So the answer is Bigger shift, but in the Opposite Direction

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