Business, 16.03.2020 23:02 katie713518

The price of apples used to make apple pies has decreased. At the same time, people expect the price of apple pies increase significantly in the future. Given these two effects, what will happen to the current equilibrium quantity and price of apple pies? a. Equilibrium price will decrease; the effect on quantity is ambiguous. b. Equilibrium quantity will increase; the effect on price is ambiguous. c. Equilibrium quantity will decrease, equilibrium price will increase. d. Equilibrium price will increase; the effect on quantity is ambiguous.

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Answer from: unicornqueen30

the correct answer is "Equilibrium quantity will increase; the effect on price is ambiguous"

Explanation:

The supply will increase as the cost of production of apple pies has diminished. The curve of the graph for supply will move to the right.

In the event that customers expect the future costs of apple pie rises, they will stock up now and the interest for apple pie will rises. The curve of the demand graph move to right.

At the point when both demand and supply graph curve bends a similar way, the harmony amount will increase however the impact on balance cost is indeterminate.

Answer from: blackchina71

Equilibrium price will decrease; the effect on quantity is ambiguous.

Explanation:

Apples are used to make apple pies so a decrease in price of apple price is a reduction in input price for apple pie production.

This will result in a reduction in the equillibrum price of apple pies. Customers will buy at a cheaper price.

The effect on equillibrum quantity is unclear because the price reduction should increase quantity supplied, but the news of a future increase in the price of apple pies may cause suppliers to reduce quantity supplied so that they sell at higher prices and make more profit.

Answer from: Quest

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

Answer from: Quest

mauve company permits employees to occasionally use the copying machine for personal purposes

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The price of apples used to make apple pies has decreased. At the same time, people expect the price...