In the market for domestic avocados. What would happen to the market clearing pr
ID: 1207170 • Letter: I
Question
In the market for domestic avocados. What would happen to the market clearing price and the equilibrium quantity if there was a drought in avocado growing area? The market clearing price would fall, and the equilibrium quantity would fall. The market clearing price would rise, and the equilibrium quantity would rise. The market clearing price would rise, and the equilibrium quantity would fall. The market clearing price would fall, and the equilibrium quantity would rise. In a market system, the costs associated with exchanging goods are known as signaling costs. voluntary costs. wholesale costs. Transaction costs. Refer to the above figure. Which of the following statements is TRUE? Panel A shows a change in quantity supplied and panel B shows a change in supply. Panel A shows an increase in supply and panel B shows a decrease in supply. Panel A shows a change in supply and panel B shows a change in quantity supplied. Both panels A and B show an increase in supply. Economics can be described as the study of how people use_______ resources to satisfy______ wants. unlimited; unlimited limited; unlimited unlimited; limited limited; limited Suppose the population of EI campo is 120,000. Of the population 16 years and older, 50,000 are employed, 10,000 have never worked and are not looking for work. 5,000 are not working and are looking for work, and 15,000 are retaired and not looking for work. The labor force equals 65,000 80,000 50,000 55,000Explanation / Answer
Q 14. Ans: C , This is because the impact of drought is immediate fall in supply as production falls and there will not any change is demand for avogadros as this is an effect on supply. Due to this the market clearing price will rise and the equilibrium quantity would fall.
Q 15. Ans: D, Transaction costs cover a wide range: communication charges, legal fees, informational cost of finding the price, quality, and durability, etc., and may also include transportation costs. Transaction costs are a critical factor in deciding whether to make a product or buy it. Also called frictional cost.
Q 16. Ans: Statements A is correct as pannel A shown change is quantity supplies which is concept of movement along the supply curve where the supply curve would not move from its axis. There can be extension (rise in quantity supplied) or contration (Fall is quantity supplied). Movement along supply curve happense due to own price of the commodity. Pannel B shows fall in supply which is basically s shift in supply in our case the supply falls. In this case the supply curves shifts from its axis. Rest of the statements have conceptual errors.
Q 17, Ans B: Economics is a study of how people make choices which are always unlimited from the availiable limited resources. Human wants never ends, when one goal is achieved, we move to another one. But the resources ( mostly the non renewable resources) are limited. This situation can be summed as is known as Scarcity.
Q 18: Ans: D, Labour force is equal to total number of people employed plus total number of people unemployed. Here unemployed are those people who does not have a job but is looking for a job and are active.
Therefore: Labour force = 50,000 + 5000
= 55000
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