Question four students from your economics class are, Ask an Expert

Economics

Question: Four students from your economics class are sitting in a local restaurant discussing the market for coffee. Below are quotes from each of the four students. All of the following quotes are logically correct except one. Which quote indicates incorrect economic analysis?

A. Nicholas: "If Brazil is hit hard by such a severe freeze that half of its crop is wiped out, then the price of coffee will probably rise."

B. Kendra: "If the price of caffeinated soft drinks such as Mountain Dew went down, then consumer demand for coffee would go down since they're substitutes for each other."

C. Sergei: "If the demand for coffee were to increase, then I would expect the price to rise, which would then cause the demand to fall back down to its original position."

D. Tasha: "If coffee drinkers expect the price of coffee to rise next month, then current demand will go up and lead to a price increase this month."

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92582517

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question in the small closed economy of banana republic the

Question: In the small closed economy of Banana Republic, the currency is the dollar. Statistics for last year show that private saving was 60 billion dollars, taxes were 70 billion dollars, government purchases of goods ...

Question dp inc is a us based firm that sells farm

Question: DP, Inc. is a U.S. based firm that sells farm equipment and faces demand given by P = 4,000 - Q, where P denotes price in dollars and Q is quantity of units sold per month. In its East coast factory, the firm's ...

Question - the general mills company gmc purchased a

Question - The General Mills Company (GMC) purchased a milling machine for $90,000, which it intends to use for the next five years. This machine is expected to save GMC $31,000 during the first operating year. Then the ...

Question imagine that you are the administrator of a city

Question: Imagine that you are the administrator of a city hospital and you have been asked by your hospital's legal counsel to prepare a presentation for your hospital's medical team that discusses negligence in the hea ...

Question consumer surplus is used as a measure of a

Question: Consumer surplus is used as a measure of a consumer's net benefit from purchasing a good or service. Explain why consumer surplus is a measure of net benefit. The response must be typed, single spaced, must be ...

Question there are a handful of employee-owned firms in the

Question: There are a handful of employee-owned firms in the United States. In them, committees of workers make decisions that professional managers would normally make (e.g., which markets to enter, how to price product ...

Question competency appraise the relationship between a

Question: Competency: Appraise the relationship between a heightened regulatory environment and corporate governance. Instructions: ABC Bank officials view compliance with regulations as a necessity for the very survival ...

Question - market demand - in gas pump south dakota every

Question - Market Demand - In Gas Pump, South Dakota, every Buick owner's demand for gasoline is 20 - 5p for p less than or equal to 4 and 0 for p > 4. Every Dodge owner's demand is 15 - 3p for p less than or equal to 5 ...

Question why countries often import and export varieties of

Question: Why countries often import and export varieties of the same type of goods? Can Ricardian or H-O Models explain this phenomenon? Relate the vertical and horizontal intra-industry trade to Monopolistic competitio ...

Question internal markets define the term principal-agent

Question: Internal markets Define the term principal-agent problem. What principal agent problems exists in the market? What principal agent problems exist in a firm? What are possible solutions to principal agent issues ...

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