« previous next »

Author Question: A change in any of the ceteris paribus conditions for demand leads to a A) a good going from an ... (Read 162 times)

MGLQZ

  • Hero Member
  • *****
  • Posts: 579
on: Jun 29, 2018
A change in any of the ceteris paribus conditions for demand leads to a
 
  A) a good going from an inferior good to a normal good.
  B) movement along the demand curve.
  C) shift of the demand curve.
  D) change in supply.

Question 2

Explain why an external cost leads to an over-allocation of resources to the production of a good.
 
  What will be an ideal response?


amcvicar

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

An external cost is the cost associated with the production of a good that is not borne by the seller. Rather, the cost is borne by third parties. The seller calculates the amount of the good to produce by comparing private benefits and costs. By ignoring the external costs, the seller produces more of the good than would be the case if the seller actually had to bear the full costs of production. Hence, the seller overallocates resources to the production of the good.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

MGLQZ

  • Hero Member
  • *****
  • Posts: 579
Reply #2 on: Jun 29, 2018
Thank you


amcvicar

  • Sr. Member
  • ****
  • Posts: 341
Reply #3 on: Jun 29, 2018
No problemo


« previous next »
 

Did you know?

Everyone has one nostril that is larger than the other.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

The black-capped chickadee is a permanent resident in biomes with harsh winter conditions. The black-capped chickadee is a permanent resident in biomes with harsh winter conditions.
Climate Change Climate Change
Aspartate leads via homoserine to threonine, lysine, and methionine Aspartate leads via homoserine to threonine, lysine, and methionine
Avocados are a good source of pantothenic acid, dietary fiber, vitamin K Avocados are a good source of pantothenic acid, dietary fiber, vitamin K
Change in Bone Mass over Time In your early years, more bone mass is added than lost in your body Change in Bone Mass over Time In your early years, more bone mass is added than lost in your body
A single-nucleotide change in the DNA encoding -globin A single-nucleotide change in the DNA encoding -globin
Video: DNA fingerprinting Animation

For a complete list of videos, visit our video library