Discuss the correct and incorrect economic analysis in the following statement
"If good weather in Hawaii creates a bumper crop of pineapples, the supply of pineapples will increase. This will result in a price decrease, which will then cause the supply of pineapples to decrease."
What will be an ideal response?
The supply of pineapples will increase resulting in a lower equilibrium price and a higher equilibrium quantity but the lower price will not shift the supply curve for pineapples.
You might also like to view...
Dobson Construction has an investment project that would cost $150,000 today and yield a one-time payoff of $167,000 in three years. Among the following interest rates, which is the highest one at which Dobson would find this project profitable?
a. 5 percent b. 4 percent c. 3 percent d. 2 percent
In U.S. trade law, the ________ allows for the imposition of restrictions on fairly traded imports that cause or threaten harm to domestic industry
A) escape clause B) countervailing duty C) GATT D) fair trade law
We import more goods and services from ___________ than from any other country.
Fill in the blank(s) with the appropriate word(s).
Assume the average annual CPI values for 2017 and 2018 were 207.3 and 215.3, respectively. What was the percent increase in the CPI between these two years?
A) 0.96 B) 1.04 C) 3.86 D) 8.0