The graph below shows the market for a good where suppliers choose the quantity supplied according to the price of the previous period, but consumers choose the quantity bought according to the price of the current period. First, assume that demand is represented by D1 and that the price-quantity adjustment process starts from point a. Sketch the adjustment process and identify whether the market will converge to the long-run equilibrium P*Q*. Second, assume that demand is represented by D2 and that the price-quantity adjustment process starts from point a’. Sketch the adjustment process and identify whether the market will converge to the long-run equilibrium P’Q’. What factor accounts for the different outcomes under D1 and D2 (In solving this, it may be easier to work with two separate graphs)

Which basic economic questions deals with the issue of how the incomeof people in various occupations is determined

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

Costs of production that do not change when output changes.question 17 options: total revenuefixed incometotal costfixed cost