1- Which of the following would be expected to cause a decrease in the supply of
ID: 2993965 • Letter: 1
Question
1- Which of the following would be expected to cause a decrease in the supply of apples?
an increase in the prices of the inputs used to make apples
a cost-reducing change in the technology of producing apples
a decrease in the price of apples
both (a) and (c)
none of the above
2- The demand for textbooks is Q = 200 - P + 25U - 50Pbeer. Assume that the unemployment rate U is 8 and the price of beer Pbeer is $2. When the average price of a textbook is P = $100, the cross price elasticity of demand with respect to beer is
-2.0
-1.0
-0.5
5.0
-50
an increase in the prices of the inputs used to make apples
B.a cost-reducing change in the technology of producing apples
C.a decrease in the price of apples
D.both (a) and (c)
E.none of the above
2- The demand for textbooks is Q = 200 - P + 25U - 50Pbeer. Assume that the unemployment rate U is 8 and the price of beer Pbeer is $2. When the average price of a textbook is P = $100, the cross price elasticity of demand with respect to beer is
-2.0
-1.0
-0.5
5.0
-50
Explanation / Answer
(1) Answer:both (a) and (c)
(2) -0.5
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