What happens to the supply of beef if the price of chicken goes down a related good?
As the price of beef decreases, consumers will buy more beef and less chicken. The demand for chicken will decrease, causing a decrease in the equilibrium price and quantity of chicken. A lower price of beef will increase the supply of all goods in which beef is an input.
What will happen to the price of pork explain briefly if the prices of beef and chicken are set below market-clearing levels then the price of pork will?
Your answer is correct. What will happen to the price of pork? Explain briefly. If the prices of beef and chicken are set below market-clearing levels, then the price of pork will (rise or fall) because pork is a (substitute or complement) for beef and chicken.
Which one of the following would not occur if the market price was above the market-clearing price?
Which one of the following would NOT occur if the market price was above the market-clearing price? Consumers would bid up the price. the price is such that the amount of consumers want to buy equals the amount producers want to sell.
Which factor would cause an increase in the supply of a good?
Supply refers to an economic concept describing the total amount of goods or services available to customers. The concept is closely related to demand for a good at a certain price; an increase in price is likely to cause an increase in supply and vice versa.
What will happen to the equilibrium price and quantity of beef if the price of chicken feed increases assume beef and chicken are substitutes )?
Both will increase. What will happen to the equilibrium price and quantity of beef if the price of chicken feed increases? (Assume that chicken and beef are substitutes.) Equilibrium price will fall; equilibrium quantity will fall.
What will happen to the equilibrium price and quantity of beef if the price of chicken feed increases?
Faced with higher prices of chicken at the supermarket, more consumers will choose substitutes for chicken — and the demand for beef will increase. The resulting equilbrium price of beef will be higher; the equilbrium quantity of beef will be lower.
When a shortage exists there is a tendency for price to?
When a shortage exists, there is a tendency for price to… in order to equate quantity demanded and quantity supplied.
What factors will determine the sizes of the shortages?
The size of the shortage depends on how far the price ceiling is from the equilibrium price, or as you called it, the market clearing price. The lower it is in comparison to the market clearing price, the higher the demand and the lower the supply, so the greater the shortage.
When the government controls the price of a product causing the market price below the free market equilibrium?
Laws enacted by the government to regulate prices are called price controls. Price controls come in two flavors. A price ceiling keeps a price from rising above a certain level—the “ceiling”. A price floor keeps a price from falling below a certain level—the “floor”.
In what two ways can the government intervene to control prices?
Identify two ways the government can intervene to control prices. The government can impose price ceilings (rent control) or price floors (minimum wage). What is the purpose of minimum wage? In a free market, what impact does a shortage have on consumers?
How does price affect supply?
According to basic economic theory, the supply of a good will increase when its price rises. Conversely, the supply of a good will decrease when its price decreases. Overall, price elasticity measures how much the supply or demand of a product changes based on a given change in price.
What happens to supply when price increases?
When economists talk about supply, they mean the amount of some good or service a producer is willing to supply at each price. An increase in price almost always leads to an increase in the quantity supplied of that good or service, while a decrease in price will decrease the quantity supplied.