« previous next »

Author Question: If Brazil's gross revenue from coffee exports doubles from one year to the next even though the ... (Read 56 times)

bb

  • Hero Member
  • *****
  • Posts: 544
on: Jun 29, 2018
If Brazil's gross revenue from coffee exports doubles from one year to the next even though the number of bags of coffee exported declines 50 percent,
 
  A) individual Brazilian coffee producers are price searchers.
  B) individual Brazilian coffee producers have substantial market power.
  C) the demand for Brazilian coffee is most likely elastic.
  D) the demand for Brazilian coffee is most likely inelastic.

Question 2

What is likely to happen to the allocation of resources if there is a sudden increase in the demand for a good produced by a perfectly competitive industry?
 
  What will be an ideal response?


hramirez205

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

If there is an increase in the demand for a good produced by a perfectly competitive industry, the equilibrium price in the industry will increase and the existing firms will earn higher profits. This will act as an incentive for newer firms to enter the industry. As such, resources and firms will move into the industry because of the sudden increase in the demand for this good.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

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.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

A 5,000-year-old Egyptian garment A 5,000-year-old Egyptian garment
In the past year, about one in five adults in the United States reported symptoms of anxiety ... In the past year, about one in five adults in the United States reported symptoms of anxiety ...
Available Fresh Water per year Available Fresh Water per year
Overfished per year Overfished per year
The average weight gain between Thanksgiving and New Year's Day is about a pound The average weight gain between Thanksgiving and New Year's Day is about a pound
An organizational specialist is hired as a consultant to a company planning to open a coffee ... An organizational specialist is hired as a consultant to a company planning to open a coffee ...
Video: Immune responses Animation

For a complete list of videos, visit our video library