Economics Problem Essay

1)FalseWhen the submit wrick ball shifts left, it means on that point is less implore for diamonds. However, when consumer income make ups, their purchasing origin increments (assuming the relative charge of diamonds stay constant). That existence said, consumers argon more than likely to get more diamonds, especially because it is a extravagance good, causing the curve of diamonds to shift right, increase the consume.2)FalseAs the population increases, the hire of bellyache increases as well, causing the demand curve to shift right. In order to placate for the increased demand in hollo, the monetary value needs to be increased as well in order to constitute the appropriate market p sift for the menstruum render. Correspondingly, at the new demand curve, consumers are pull up stakesing to bribe more for separately toll per unit. Thus, this disceptation is non an typesetters case of the Giffen good and does not illustrate an upwards sloping demand, instead , the demand curve obviously shifted right to account for the increase beef demand.3)UncertainAlthough sinew from nuclear power and inunct are considered embossments, it is unclear whether or not the techniques for producing energy from nuclear power is cheaper or similar in footing when compared to energy produced from petroleum. IF, energy produced from nuclear power is cheaper or similar in legal injury, the demand for oil as an energy source lead be more elastic.4)FalseThe demand curve is the relationship between price and metre demanded, it measures how much consumers are voluntary to buy for each price per unit. Change in price of good alone does not shanghai the demand curve, but it does affect the quantity demanded. In other words, if the price of good commutes, we would be moving on the demand curve, not affecting the demand curve to shift left or right. Factors that would affect the demand curve take price of related goods, income, tastes, etc)5)TrueAssuming t he statement focuses on the domestic tomatoes, this is true because the change in price of the domestic tomatoes affects solitary(prenominal) the quantity demanded of the domestic tomatoes, not the demand curve. The decrease in price result move us down the demand curve, increasing the amount consumers are giveing to buy per price per unit. 6)FalseIf the price of something goes up, it is not necessarily irrational to buy more of it. It really depends on the good that the consumer is buying. For example, because rice is a staple in China, mass will celebrate to buy it in spite of the price increase. To them, there is no substitute to rice, thus the income effect dominates, causing them to celebrate buying rice at a higher price.7)FalseThe price may or may not rise when supply and demand increase, it all depends on whether or not the supply and demand increase together proportionately. If supply and demand increase at the same rate, the quantity will increase but the price will stay constant. If supply increases more than demand, the price will decrease. If demand increases more than supply, the price will increase.8)FalseIn this case, I sawing machine bollocks up as a need it is relatively inelastic because anyone who owns and uses a gondola will need to buy petrol regardless of the price. The quantity demanded moves along the demand curve as the price of gas increases or decreases, and this is true for both professors and ammonium alum students. Even without a ceiling, students will continue to purchase gas. Moreover, the incomes of a professor and potassium alum student are not clear stated. Some grad students may comport more income than a professor, giving the grad student just as much, if not more, purchasing power, thus a price ceiling does not necessarily thinned the professor more than the student.