--%>
Assignment Help - homework help

Demand and supply problem

Assume that the demand for jeans rises. At similar time, since of an increase in price of cotton, the supply of jeans reduces. How will it influence the price and amount sold of jeans?

Answer: Rise in market demand for jeans all along with a reduction in the supply of jeans must increase the price of jeans and the quantity sold will refuse.

   Related Questions in Microeconomics

  • Q : Implicit and explicit economic costs I

    I have a problem in economics on Implicit and explicit economic costs. Please help me in the following question. The Economic profit is the difference among total revenue and: (i) The sum of explicit and implicit economic costs. (ii) Accounting cost. (iii) Variable co

    		•
  • Q : Profit Maximization in Resource Markets

    I have a problem in economics on Profit Maximization in Resource Markets. Please help me in the following question. To make a decision regarding resource hire, the firm should consider: (1) The price of resource. (2) The productivity (MP) of resource. (3) Output price

    		•
  • Q : Income elasticity of demand when

    When average income rises from $18,000 to $22,000 yearly and yearly gasoline consumption per household increases from 1000 to 1500 gallons, in that case the income elasticity of demand for gas is: (1) in the inferior range. (2) 0.5. (

    		•
  • Q : Tax cutting affect the economy How does

    How does tax cuts affect the economy?

    		•
  • Q : Earn incentive to work When welfare

    When welfare recipients are needed to pay back $1 of benefits for each $1 of wages they earn, it will: (w) enhance the incentive to work. (x) weaken the incentive to work. (y) have no effect on the incentive to work. (z) reduce welfare benefits to the

    		•
  • Q : Problem on Institutional frameworks I

    I have a problem in economics on Institutional frameworks. Please help me in the following question. The Institutional frameworks in which the transactions take place are: (1) Money mills. (2) Circular flows. (3) Barriers to entry. (4) Markets

  • Q : Marginal utilities for additional good

    When each ice cream cones cost $2 and fried grits are of $4 per pound and your marginal utilities from an additional cone or an additional pound of fried grits per month are each of 40 utils, then, given your present budget, you: (1) Are presently max

    		•
  • Q : Price of a share of corporate stock

    When the price of a share of corporate stock increases, all else identical, there will be reduces in the: (w) overall liquidity of a portfolio which includes the stock.  (x) likelihood that the individual who owns the stock will sell this. (y) ra

    		•
  • Q : Commodities of inelastic demand Which

    Which of the given commodities contain inelastic demand? A) Salt B) A particular brand of lipstick C) Medicines D) Mobile phone E) School uniform

    		•
  • Q : Substitution effect on supply curves

    One of the reasons for positive relationship among relative price and quantity supplied is the: (1) Technology effect, whereby bigger firms generate at lower average costs than the smaller firms. (2) Substitution effect, whereby firms switch among for

    		•