Discuss the correct and incorrect economic analysis in the following statements
"If a disease kills a large number of turkeys, the supply of turkeys will decrease. This will result in a price increase, which will then cause the supply of turkeys to increase."
The supply of turkeys will decrease resulting in a higher equilibrium price and a lower equilibrium quantity but the higher price will not shift the supply curve for turkeys.
You might also like to view...
Which of the following would likely lead to a tragedy of the commons?
a. Causing a reduction in the fish population by overfishing an area b. Polluting the ocean and causing the death of numerous fish varieties c. Allowing professional fishermen to fish in international waters d. Failing to regulate the practices of the fishing industry
Economists like Hernando de Soto feel that a ________ is the key to economic development.
A. stable currency B. strong titling system C. strong currency D. strong national defense
The own price elasticity of demand for apples is ?1.2. If the price of apples falls by 5 percent, what will happen to the quantity of apples demanded?
A. It will increase 6 percent. B. It will fall 4.3 percent. C. It will increase 5 percent. D. It will increase 4.2 percent.
The German Hyperinflation of the early 1920s was caused by
A) the German government raising funds for expenditures by selling bonds to the central bank. B) an overly aggressive monetary policy implemented to combat a severe recession. C) rising oil prices after World War I caused a severe stagflation and hyperinflation. D) large deficits resulting from the high levels of war spending and falling taxes.