In recent years the cost of producing wines in the U.S. has increased largely due to rising rents for vineyards. At the same time, more and more Americans prefer wine over beer
Which of the following best explains the effect of these events in the wine market?
A) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity.
B) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity.
C) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price.
D) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in both the equilibrium price and the equilibrium quantity.
A
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If the price of a good is decreased and total revenue received from the sale of this good does not change, then the price elasticity of demand for the good is
A) elastic. B) inelastic. C) unitary. D) None of the above
Refer to the table below. What is the probability of selling less than 22 cakes?
The above table shows the probability distribution of cake sales at Busy Betty's Bakery.
A) 0.10
B) 0.60
C) 0.40
D) 0.20