Does an increase in average income cause a shift of the demand curve for avocados or a movement along the demand curve? Explain briefly.
Answer to relevant QuestionsGiven the estimated demand function Equation 2.2 for avocados, Q = 104 – 40p + 20pt + 0.01Y, use algebra (or calculus) to show how the demand curve shifts as per capita income, Y, increases by $ 1,000 a year. Illustrate ...Holding the price of fertilizer constant, by how much would the price of avocados need to rise to cause an increase of 60 million lbs per month in the quantity of avocados supplied? In Q& A 2.1, if the price of tomatoes rises to $ 1.80 per lb, what are the new equilibrium price and quantity for avocados?Use a supply-and-demand diagram to show the effects of occupational licensing on the equilibrium wage and number of workers in an occupation as described in the Mini-Case “Occupational Licensing.” List as many industries as you can for which the supply-and-demand model is likely to be appropriate.
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