hello chegg team, i need a answers of following questions. 1. Your brother -in-l
ID: 1147365 • Letter: H
Question
hello chegg team, i need a answers of following questions.
1. Your brother -in-law manages a corn farming business. At a recent family gathering, he confided in you that he is very happy because he expects a record crop of corn (he will harvest lots of corn) this year. Your brother-in-law is fully aware that all corn farmers will have record crops as well. Why is he so happy? Explain fully (3 lines)
2. For the following scenarios, state whether it will affect the demand or supply of the Toyota Prius and state the impact this will have on the market price and equilibrium quantity (2 lines answer for each scenario a-f)
Honda comes out with a new electric car that is receives glowing reviews.
The price of batteries decreases sharply.
Due to concern over tensions in the Middle East, the cost of gasoline increases greatly.
Toyota’s previously sterling reputation for quality is tarnished by numerous recalls and concerns about car safety.
Facing a large budget deficit, the city of Nanaimo decides to stop bus service.
The world economy suffers a deep recession.
3. For each of the following statements, determine whether there has been a change in supply of change in quantity supplied (1 line answer for each statement a-c)
The price of Canadian-grown peaches skyrockets during an unusually cold summer that reduces the size of the peach harvest.
An increase in income leads to an increase in the price of family-restaurant meals, and to an increase in their sales
Technology improvement in electronic publishing lead to price reduction for e-books and an increase in e-book sales
Explanation / Answer
Bumper corn means supply of corn is likely to outpace the demand. Rise in supply would depress the prices of corn in the market thereby leading the fall in profits expectation. But, rise in supply of corn would not become the matter of worry for farmers. Floor price insurance would ensure the certain level of profits for farmers. Further, bumper corn would lead to the economies of scale that would help to reduce the relative cost of output.
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