Question
Can someone please check my answers and let me know what the correct one is if one’s wrong!
QUESTION 1 1 points A farmer can grow wheat or corn. If the price of wheet increases, the Tarmer expects a beer relum frem growing wieat All elge equal the com supply curve shits to the right shifts to the lelL stays where it is This is movement along the cum supply curve. becomes a backward hencing curve QUESTION 2 1 points Saved The oppartunity cost of a new public highway is the other goods and services that must be sacrifced to construct the new highway. money cast of hiring contractors and construction workers iar the new highway cost of constructing the new highway in a future year increase traffic from lhe usa of the new highway QUESTION 3 1 points All ese equal, which of the following will cause the damand cunvs for a good to shift to the lft (decrease)? an increase in the prica of the good an expectation of a future price declina a decrease in the price of the good en increase in th supply of a good. QUESTION 4 1 points Everyching else constant, which of the following avents will cause a decreese In the equillbrlum price? an increase in demand a decrease in demand en decrease in supply a government tax on output QUESTION 6 1 points Mario buys eight units of good X when his income is 52,000 a month. When his income increases to S2 TU0 per month, he buys only six units o good X. For Mario, good Xie a normal good an inferior good. a good with few substitutes youd of high value QUESTION 6 1 points Saved Deciding whether to sludy an additional hour for an exarn by comparing the additional benefils to the additional coets of an extra hour of study is an example of. the scientic method the invisible hand. marginal thinking ) Incraasing oppnrtunity cost
Explanation / Answer
1. As wheat reaps more price, farmer will produce more of that, and less of corn, hence, supply of corn shifts left
2. Opportunity cost will be other goods and services sacrificed to construct highway.
3. An incraese in the price of the good causes demand curve to shift left
4. A decrease in price causes equilibrium price to decrease.
Note: max. 4 questions at a time