This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: According to the idea of consumer sovereignty, what will happen in the market for widgets if ... (Read 111 times)

hbsimmons88

  • Hero Member
  • *****
  • Posts: 526
on: Jun 29, 2018
According to the idea of consumer sovereignty, what will happen in the market for widgets if consumers decide they no longer desire widgets?
 
  What will be an ideal response?

Question 2

The iconic American drink-maker, Coca-Cola, announced plans in 2008 to buy the dominant Chinese fruit juice company for 2.5 billion. But China just rolled out a new law to guard against business monopolies.
 
  How would this rent-seeking behavior by Coca-Cola most likely affect efficiency in the drink market? A) Profit would increase.
  B) Producer surplus would increase.
  C) Consumer surplus would decrease.
  D) Deadweight loss would increase.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

KKcool

  • Sr. Member
  • ****
  • Posts: 340
Reply #1 on: Jun 29, 2018
Answer to Question 1

If consumers no longer desire widgets, they will send a message to producers by not purchasing widgets. Since firms will be unable to make a profit selling widgets, widget-producing firms will go out of business (or switch to producing something else) and widgets will no longer be produced. Thus, the consumers' preferences dictate what is produced.

Answer to Question 2

D


hbsimmons88

  • Member
  • Posts: 526
Reply 2 on: Jun 29, 2018
Gracias!

juliaf

  • Member
  • Posts: 344
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Much time and effort occurs between the development of a research idea and the statistical analysis Much time and effort occurs between the development of a research idea and the statistical analysis
Hydroelectric power: 2013 Global Market Hydroelectric power: 2013 Global Market
Continental Drift: An Idea Before Its Time Continental Drift: An Idea Before Its Time
Stock Market Question Stock Market Question
Stock Market Tracks Growth in GDP Stock Market Tracks Growth in GDP
Markets and Institutions Market Story Problem Markets and Institutions Market Story Problem
Video: Virtual Tour of the Eye Animation

For a complete list of videos, visit our video library