# Microeconomics (full version)

posted by .

Pharmaceutical drugs have an inelastic demand, and computers have an elastic demand. Suppose that technological advance doubles the supply of both products (that is, the quantity supplied at each price is twice what it was).

a. What happens to the equilibrium price and quantity in each market? b. Which product experiences a larger change in price? c. Which product experiences a larger change in quantity? d. What happens to total consumer spending on each product?

• Microeconomics (full version) -

urafgt

• Microeconomics (full version) -

What happens to the equilibrium price and quantity in each market? b. Which product experiences a larger change in price? c. Which product experiences a larger change in quantity? d. What happens to total consumer spending on each product?

## Similar Questions

1. ### Economics

Beachfront resorts have inelastic supply, and automobiles have an elastic supply. Suppose that a rise in population doubles the demand for both products (that is, the quantity demanded at each price is twice what it was). a. What happens …
2. ### Microeconomics-Consumer & Producer Suplus Graphs

Can anyone help? I am trying the draw the following graphs for Consumer & Producer Suplus. I have made several attempts and I know I am not drawing them right. 1) The cost of producing stereo systems has fallen over the past several
3. ### Mircoeconomics: Elasticity

Please help! I have a mid-term test in a couple of minutes... -------------- If the demand for some good fluctuates, but supply is constant, then which of the following combinations would generally yield the greatest quantity fluctuations?
4. ### microeconomics

When agricultural production increases , the total amount paid for agricultural products tends to a. increase because demand is price elastic b. decrease becasue deamn is price elastic c. increase because demand is price inelastic …
5. ### Microeconomics

When agricultural production increases , the total amount paid for agricultural products tends to a. increase because demand is price elastic b. decrease becasue deamn is price elastic c. increase because demand is price inelastic …
6. ### home economics

Suppose that 200 gallons of gasoline are demanded at a particular price. If the price drops by 1 percent, the quantity demanded of gasoline increases to 200.5 gallon. which of the following statement is true?
7. ### Economics are these correct

Are these correct? Thanks, Answer is next to number of question C 1. Which of the following is consistent with the law of supply?
8. ### economics

Beach front resorts have an inelastic supply and automobiles have an elastic supply. Suppose that a rise in population doubles the demand for both products(that is the quantity demanded at each price is twice what it was) a, what happens …
9. ### Microeconomics

Pharmaceutical drugs have an inelastic demand, and computers have an elastic demand. Suppose that technological advance doubles the supply of both products (that is, the quantity supplied at each price is twice what it was).
10. ### Microeconomics

Pharmaceutical drugs have an inelastic demand, and computers have an elastic demand. Suppose that technological advance doubles the supply of both products (that is, the quantity supplied at each price is twice what it was).

More Similar Questions