Each demand curve must eventually hit the quantity axis, Ask an Expert

Economics

2 A ) Each demand curve must eventually hit the quantity axis because with limited incomes there is always a price so high that there is no demand for the good.

B) If the elasticity of demand for long-distance calls is 1.5 and the price of long- distance calls falls by 20 percent as a result of increased competition from the telecommunications bill that passed two years ago, households on average will spend less in the total on long distance service.

C) In 2003, an econometrics class at Boston University estimated that the demand for lobsters in the United States was approximately a straight line intersecting the price axis at $87 per pound and intersecting the X - axis at 110 million pounds per year. The demand curve is very elastic.

7 Illustrate the following with supply and/or demand curves:

A) a situation of excess labor supply ( unemployment) caused by a minimum wage law

B) the effect of a sharp increase in heating oil prices on the demand for insulation material

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9309827

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question in europe the uk is the only country where there

Question: In Europe, the UK is the only country where there has been a consistent tradeoff between inflation and unemployment. What factors caused this tradeoff to occur in Britain but not in Continental Europe? The resp ...

Question as a manager one of your responsibilities is to

Question: As a manager, one of your responsibilities is to monitor recent changes in inflation. However, the recent statistics appear to be quite confusing. The CPI rose only 0.1%, but the PPI for finished goods increase ...

Question from the college scorecard average costs of

Question: From the College Scorecard, average costs of attending UCR is $13,144. Average salary for UCR attendees is $47,200 Average salary of someone who does not attend college is roughly $33,800 ($651/week from slides ...

Question shortly after world war ii the us occupying forces

Question: Shortly after World War II, the US occupying forces set the value of the Dmark and the yen below equilibrium values in Germany and Japan. Over the next 25 years, those countries both staged an amazing recovery. ...

Question you borrowed 100000 with an interest rate of 12 to

Question: You borrowed $100,000 with an interest rate of 12% to be paid back with 10 equal end-ofyear payments. How much is your outstanding debt after 5 payments? The response must be typed, single spaced, must be in ti ...

Question evaluate the causes of sudden stop and currency

Question: Evaluate the causes of Sudden Stop and Currency Crises as outlined in the lecture and by Claessens and Kose alongside the Walter/Steinberg reading on external adjustment and imbalances. Using a political econom ...

Question a company bought a 65000 construction equipment

Question: A company bought a $65,000 construction equipment (5-year class). What is the MACRS depreciation for year 4? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow ...

Question assume that us imports have an income elasticity

Question: Assume that US imports have an income elasticity of 1.3 and a price elasticity of -0.5, and US exports have an income elasticity of 1.2 and a price elasticity of -0.7. They also have a ‘‘repercussion elasticity ...

Question consider the industry in which you work or one

Question: Consider the industry in which you work, or one about which you have some knowledge. What are the costs and benefits associated with attempting to bar entry of other firms into this industry? How would a firm e ...

Question assume that the demand for diamond rings is q 24

Question: Assume that the demand for diamond rings is Q = 24 - P, and each ring contains one diamond. The marginal cost for DeBeers of mining a diamond is $2, and an independent retailer's marginal cost of retailing is $ ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert