working on homework & stuck on these three questions. Someone please check if I answered these correctly; Thank you!
1. In the event of excess supply in the coffee market __________.
A. the price of coffee will increase
B. the price of coffee will decrease
C. the supply of coffee will decrease (supply will shift to the left. to meet the demand
D. the demand for coffee will increase (demand will shift to the right. to meet the supply
---My answer "A"---
2. A change in quantity supplied of a product is the result of a change in __________.
A. consumer income
B. the state of production technology
C. the cost of producing the product
D. the price of the product
--- My answer "D"---
3. The big tradeoff is the tradeoff between __________.
A. quantity demanded and quantity supplied
B. price and quantity demanded
C. efficiency and equity
D. total surplus and deadweight loss
---my answer is "A"---
1. A - no
2. D - no
3. A - no
can you let me know if I'm on the right path...
1. if it's not A; has to be "D"
2.the only other answer that would make sense is "C"
3. a tradeoff is the balance achieved between two desirable but incompatible features. .. so it's "D"
1 is neither A nor D.
2. I'm not sure
3. I don't think so.
Please study your text materials carefully.
So now I understand #1. the excess supply occurs when the quantity supplied exceeds the quantity demanded, meaning that producers are willing to sell more than consumers are willing to buy. This causes the price of coffee to fall as firms out the price to sell the coffee.
Correct.
1. In the event of excess supply in the coffee market, the correct answer is B. The price of coffee will decrease. When there is excess supply, it means that the quantity of coffee supplied is greater than the quantity demanded. In order to clear the excess supply, sellers will need to reduce the price to attract buyers and stimulate demand.
To understand this, you can refer to the law of supply and demand. The law of supply states that as the price of a good increases, the quantity supplied by sellers also increases. On the other hand, the law of demand states that as the price of a good increases, the quantity demanded by buyers decreases. Therefore, in the case of excess supply, sellers will lower the price to entice buyers and bring the market back into equilibrium.
2. The correct answer for this question is C. The cost of producing the product. A change in quantity supplied refers to the movement along the supply curve caused by a change in the price of the product. It does not involve changes in consumer income, production technology, or the price of the product itself.
Changes in cost of production can affect the quantity supplied. For example, if the cost of raw materials or labor increases, it becomes more expensive for producers to make the product. As a result, they may reduce the quantity supplied since it would be less profitable to produce at higher costs.
3. The correct answer for this question is C. Efficiency and equity. The big tradeoff refers to the tradeoff between efficiency and equity in economic policy decisions. Efficiency refers to the allocation of resources in a way that maximizes overall productivity and economic welfare. Equity, on the other hand, relates to the fairness and distribution of resources among individuals or groups.
Achieving efficiency often requires allocating resources in a way that may not necessarily be equitable, and vice versa. For example, policies aimed at promoting income equality may involve redistributing resources from those with higher incomes to those with lower incomes, but this may reduce the overall efficiency of the economy. Conversely, policies focused on maximizing efficiency may result in unequal distribution of resources. The big tradeoff recognizes the challenges of balancing efficiency and equity in economic decision-making.
It's important to note that the other options in the question are incorrect. Quantity demanded and quantity supplied (option A) relate to specific quantities of a good or service in the market, while price and quantity demanded (option B) refer to the relationship between price and consumer demand. Option D, total surplus and deadweight loss, is not directly related to the big tradeoff but rather to the economic concepts of efficiency and market inefficiencies.