Question: Prices communicate information about the relative value of resources. Which of the following would cause the relative value and, hence, the price of potatoes to

Prices communicate information about the relative value of resources. Which of the following would cause the relative value and, hence, the price of potatoes to rise?
a. Fungus infestation wipes out half the Idaho potato crop.
b. The price of potato chips rises.
c. Scientists find that eating potato chips makes you better looking.
d. The prices of wheat, rice, and other potato substitutes fall dramatically.

Step by Step Solution

★★★★★

3.45 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a b and c would cause increases in the relative value and pr... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

230-B-E-M-E (1224).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

You are offered an asset costing $600 that has cash flows of $100 at the end of each of the next 10 years. a. If the appropriate discount rate for the asset is 8%, should you purchase it? b. What is...

A change in which of the following would cause the LM curve to shift? To rotate? To both shift and rotate? Which do not affect the position or slope of the LM curve? (a) Nominal money supply (Ms) (b)...

Which of the following would cause a revocation of S status for an existing S corporation? I. A partnership becomes a shareholder of an S corporation II. An S corporation becomes a partner in a...

Which of the following would cause a decrease in the equilibrium price and an increase in the equilibrium quantity of salmon? A decrease in demand and a decrease in supply A decrease in demand and an...

18. Prices communicate information about the relative value of resources. Which of the following would cause the relative value and, hence, the price of potatoes to rise? a. Fungus infestation wipes...

13. Prices communicate information about the relative value of resources. Which of the following would cause the relative value and, hence, the price, of potatoes to rise?

In every economy, the information about the relative value of resources in the marketplace are communicated by their prices. Which of the following would cause the value of grapes to rise and, hence,...

HI PLEASE ANSWER ALL 1. Assume the market for apples is initially in equilibrium. Which of the following will result in a higher equilibrium price of apples? a. An increase in both the demand for and...

where can I find the answers to case 6-1? (i downloaded this from CourseHero) CHAPTER 6 Foreign Currency Translation Examine the following financial performance commentary. It is extracted from Rio...

I would like someone to help me towrite-up with impression and thoughts with your own words. I do not want summarize but provide your impression and thoughts only for at least one page. Journal of...

Guide: Instructions for case analysis or articles 1. Summary: what is a main concept in the case or article?a. When you read this article you may be able to:i. Identify and differentiate the concepts...

Alpaca Corporation had revenues of $200,000 in its first year of operations. They have not collected on $20,000 of their sales, and still, owe $25,000 on $70,000 of merchandise they purchased. The...

Solve each of the equations/TVPs below. When you solve, indicate which method you are using (separable, linear, Bemoulli, exact) and why you chose that method. (-1499) # 1+9y2 dr dN di + N=Nte+2 no...

On January 1 , 2 0 2 5 , Joey Co . acquired 4 0 % of Legoria CO . s voting stock for $ 1 8 million cash. Legoria s book value on the date of acquisition is $ 6 million. A valuation analysis reveals...

Imagine a beekeeper, who produces honey and sells it at a constant price per kilogram. Draw a diagram with the quantity of honey on the horizontal axis, showing the marginal cost of honey production...

Question 1 The following information has been extracted from the books of Tonson, a limited liability company, as at 31 October 20X6. 3 You have also been provided with the following information: (a)...

Blue Ltd purchased 100% of the shares of Red Ltd on 1 July 2020 for $50 000. At that date the equity of the two entities was as follows: Blue Ltd Red Ltd Asset revaluation surplus 25,000 4,000...

Oranges Ltds profit before tax for the year ended 30 June 2023 was $1,350,000. The assets and liabilities at 30 June 2022 and 30 June 2023 were: 2023 2022 Accounts receivable 235,000 200,000...

The equation of motion for free vibration of the triple pendulum shown in Fig I are given by: [3 2 1a [3 0 0]e ml 2 2 10,+ mgl 0 2 0 0 0 10, 1 11 Assuming a solution of the form: 0(0) = 0, cos(or),...

Visit www.colorcode.com and take the site's free personality test. After you receive the results via e-mail, answer the following questions. a. What color is your personality? b. Do you feel your...

Might efficiency over time require some inefficiency at a given point in time?

How can offering quantity discounts increase a producers profits?

What is average cost pricing? How is it different from marginal cost pricing?

A firm will continue using more labor in the production process until the A . M R P L > M C L M R P L = M C L M R P L B . M R P L > M C L c . M R P L = M C L D . None o f the above.

In projectionbased clustering. we note that, if the data is well separated into clusters with means #1, . . . ,pK. then the top H eigenvectors of the data covariance matriJ-c1 say {1:1, . . . ,tIK),...

Which of the following statements is CORRECT? a. If Project A's IRR exceeds Project B's, then A must have the higher NPV. b. A project's MIRR can never exceed its IRR. c. If a project with normal...