« 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 101 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?

The FDA recognizes 118 routes of administration.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

OraQuick. A negative result would show a red line at the "C" mark, whereas a positive ... OraQuick. A negative result would show a red line at the "C" mark, whereas a positive ...
Geopolitical Change of 20th-Century Europe Geopolitical Change of 20th-Century Europe
Climate Change: Timescale decades to centuries Climate Change: Timescale decades to centuries
Geoengineering is not a solution to climate change Geoengineering is not a solution to climate change
A deficiency of linoleic acid can interfere with normal growth and result in inflammation A deficiency of linoleic acid can interfere with normal growth and result in inflammation
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
Video: What is an ecosystem?

For a complete list of videos, visit our video library