Recall the Application about craft beer and the increase in the price of hops to answer the following question(s).According to the Application, why did the price of hops increase?
What will be an ideal response?
Since 2017, craft beer production has increased. This, coupled with the fact that craft beer requires more hops, resulted in a large increase in the demand for hops. Holding the supply of hops constant, an increase in the demand for hops will result in a higher equilibrium price for hops.
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De Beers accounts for approximately 80% of diamond sales worldwide. The source of its market power is:
A. its patent on diamond production. B. the perfectly inelastic demand for diamonds. C. the engagement customs of couples in Western cultures. D. its exclusive ownership of South African diamond mines.
Pareto's Principle states that:
a. 20 percent of the time expended produces 80 percent of the results b. 90 percent of the time spent produces 10 percent of the results c. 75 percent of time is wasted d. A task or job fills the time available
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and higher level of output. C. higher price level and higher level of output. D. lower price level and lower level of output.
When the domestic currency depreciates, domestic goods become more expensive to foreign buyers
a. True b. False Indicate whether the statement is true or false