« previous next »

Author Question: If the price of almonds changed as a result of a change in the supply of almonds, is the demand for ... (Read 149 times)

Frost2351

  • Hero Member
  • *****
  • Posts: 557
on: Jun 29, 2018
If the price of almonds changed as a result of a change in the supply of almonds, is the demand for almonds elastic or inelastic? Explain your an-swer.
 
  What will be an ideal response?

Question 2

Many fast-food restaurants have signs on their cash registers that read, Your meal is free if the cashier does not give you a receipt. What might be the purpose of such a sign? Hint: there is a moral hazard problem here.
 
  What will be an ideal response?


Briannahope

  • Sr. Member
  • ****
  • Posts: 364
Reply #1 on: Jun 29, 2018
Answer to Question 1

The total revenue test indicates that the demand for almonds is elastic. The increase in the supply of almonds lowers the price but in-creases the total revenue. The total revenue test demonstrates that this outcomethe price and total revenue change in opposite directionsoccurs when the demand is elastic.

Answer to Question 2

In a fast-food restaurant it would be quite easy for the cashier to not ring up the purchase and simply pocket the cash. The sign is likely meant more as a warning to their employees to not steal. It is also a fairly cheap way of having someone else (the customer) do the monitoring of their employees behavior.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

The Revolutionary Change in the U.S Workforce The Revolutionary Change in the U.S Workforce
Religion can promote social change, as was evident in the U.S. civil rights movement. Dr. Martin ... Religion can promote social change, as was evident in the U.S. civil rights movement. Dr. Martin ...
Climate has changed habitats evolution Climate has changed habitats evolution
The growth in demand for oil in China is driven by the growth in demand for personal transport The growth in demand for oil in China is driven by the growth in demand for personal transport
The demand for cheap coal to generate electrical power is rising The demand for cheap coal to generate electrical power is rising
What mass, in grams, of a 5.00% by mass sugar water solution is needed to supply What mass, in grams, of a 5.00% by mass sugar water solution is needed to supply
Video: Neurosynapse Animation

For a complete list of videos, visit our video library