Assume a tomato farmer owns one truck and employs one driver. One Saturday a month he brings one truck load of tomatoes to the Farmer's Market
Over time he discovers that the demand for his tomatoes has increased dramatically as a result of increased marketing and advertising for the market. Explain both the short run and the long run impact on the equilibrium price and quantity of the farmer's tomatoes. Explain in terms of elasticity of supply.
The short run impact will likely be that the equilibrium price will rise but the equilibrium quantity of tomatoes is likely to stay the same. The reason is that in the short run the farmer's supply of tomatoes is relatively inelastic since he only has one truck and one delivery driver. However, with the passage of time his supply curve is likely to become more elastic if he is able to obtain another truck and deliver driver. In the long run the equilibrium quantity of tomatoes supplied will likely increase by more.
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Monetary policy is ________ flexible than fiscal policy because monetary policy changes are made by ________, while fiscal policy changes must be made by ________.
A. more; the President; legislative action B. more; legislative action; the FOMC C. more; the FOMC; legislative action D. less; the FOMC; the President
A plumber who specializes in cleaning plugged sewer lines is typically paid a higher wage than a plumber who works on installing water systems in new residential housing. Which of the following would push the wages of plumbers who work on sewer lines higher?
a. Plumbers who work on new residential housing require more training than plumbers working on sewer lines. b. Plumbing jobs that involve sewer lines are likely to have a high element of personal satisfaction. c. Plumbers who work with sewer lines are more likely to work the day shift. d. plumbers who work with sewer lines are likely to be perceived as having a "dirty" job.
Public saving is the difference between _____ and _____
Fill in the blank(s) with correct word
Two government organizations that are responsible for initiating actions against possible antitrust cases are:
A. the Department of Justice and the Department of Commerce. B. the Department of Commerce and the Federal Reserve. C. the Department of Justice and the Federal Trade Commission. D. the Department of Labor and the Department of Commerce.