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

Author Question: If there is a permanent decrease in demand in a perfectly competitive market, then there is an ... (Read 68 times)

a0266361136

  • Hero Member
  • *****
  • Posts: 538
on: Jun 29, 2018
If there is a permanent decrease in demand in a perfectly competitive market, then there is an initial ________ in price and existing firms ________.
 
  A) rise; make an economic profit
  B) rise; incur an economic loss
  C) fall; make an economic profit
  D) fall; incur an economic loss

Question 2

The price of a computer is 1,000 and the price of a car is 12,000. What is the relative price of a car? What is the relative price of a computer?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

sierramartinez

  • Sr. Member
  • ****
  • Posts: 313
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

The relative price of a car is 12,000 per car  1,000 per computer = 12 computers per car. The relative price of a computer is 1,000 per computer  12,000 per car = 0.083 of a car per computer.


a0266361136

  • Member
  • Posts: 538
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

31809pancho

  • Member
  • Posts: 317
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Decrease in Fertility, 1800–1900 Decrease in Fertility, 1800–1900
Attention and memory are in demand during circle time. Attention and memory are in demand during circle time.
Temporary and permanent pacemakers. Temporary and permanent pacemakers.
United States, southwestern and southern states are suffer from a significant decrease in rainfall United States, southwestern and southern states are suffer from a significant decrease in rainfall
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
Strategic Management and Competitive Advantage: Concepts and Cases, 6th Edition Strategic Management and Competitive Advantage: Concepts and Cases, 6th Edition
Video: Parkinson's Disease

For a complete list of videos, visit our video library