Responses
a movement downward along the demand curve
a movement downward along the demand curve
shift the demand curves for all goods and services to the right
shift the demand curves for all goods and services to the right
a movement upward along the demand curve
a movement upward along the demand curve
shift the demand curves for all goods and services to the left
9 answers
The correct response is:
shift the demand curves for all goods and services to the right.
An increase in population, such as the 25% increase expected from the new legislation, would lead to a higher overall demand for goods and services as more people will be purchasing them. This change would cause the demand curves to shift to the right, indicating an increase in demand at all price levels.
To calculate the marginal cost (MC) of increasing production from 5,000 units to 6,000 units, we need to determine the increase in total cost and divide that by the increase in output.
Identifying the relevant output levels:
Calculate total costs at these output levels:
For 5,000 units (20 workers):
For 6,000 units (30 workers):
Calculate the increase in total cost:
Calculate the increase in output:
Calculate the marginal cost: \[ MC = \frac{\text{Increase in Total Cost}}{\text{Increase in Output}} \] \[ MC = \frac{100}{1} = 100 \text{ dollars} \]
Thus, the marginal cost of increasing production from 5,000 units to 6,000 units is $100.
To calculate the marginal product of labor (MPL) associated with hiring the third worker, we need to determine the change in output when the third worker is added.
Identify the output levels:
Calculate the marginal product of labor: \[ \text{MPL} = \text{Output with 3 workers} - \text{Output with 2 workers} \] \[ \text{MPL} = 52,000 - 48,000 = 4,000 \text{ units} \]
Thus, the marginal product of labor associated with hiring a third worker is 4,000.
To analyze the effects of the two events on the market for movie tickets, we need to consider how each event influences demand and supply:
Falling prices of corn: Since corn is used in the production of popcorn and the price has fallen, the cost of producing popcorn will decrease. Given that movie tickets and popcorn are complementary goods, a decrease in the price of popcorn can lead to an increase in popcorn consumption. Therefore, this could increase the demand for movie tickets, as more people might go to the movies to enjoy popcorn.
Decrease in the number of movies shown in theaters: This is likely to decrease the supply of movie tickets because fewer movies would mean fewer screenings and therefore fewer tickets available. A decrease in the number of movies offered may also affect consumer interest in going to the theaters, potentially decreasing demand as well.
Considering both events:
The net effect on the equilibrium quantity of movie tickets is uncertain because the demand increase may counterbalance the supply decrease, but we don't know the relative magnitudes of these changes.
However, in regards to the equilibrium price:
Thus, the equilibrium price of movie tickets will likely increase.
Considering all of this, the most definite result in this scenario will be:
The market equilibrium price of movie tickets will definitely rise.
In this scenario, we have:
Given these conditions, we analyze the likely market response:
Thus, the correct conclusion is:
The low price brought about by a decrease in demand will incentivize producers to decrease the quantity of dolls supplied to the market.
