« 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 148 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?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896 Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896
Observed change in surface temperature from 1901 to 2012 Observed change in surface temperature from 1901 to 2012
Climate Change: Greenhouse gases Timescale Climate Change: Greenhouse gases Timescale
By 2100, significant change will be in the far northern latitudes, parts of Asia, and Sub-Saharan By 2100, significant change will be in the far northern latitudes, parts of Asia, and Sub-Saharan
The introduction of a new generation of electric and hybrid cars will reduce the demand for oil The introduction of a new generation of electric and hybrid cars will reduce the demand for oil
A solenoid has an area of 41.0 cm2. Find the change in magnetic flux through the solenoid. A solenoid has an area of 41.0 cm2. Find the change in magnetic flux through the solenoid.
Video: Studying the Left and Right Brain Independently

For a complete list of videos, visit our video library