Final answer:
The question explores the concepts of market equilibrium, supply and demand functions, and the adjustment of the supply curve in response to externalities in electricity generation, focusing on how these factors determine the equilibrium price and quantity and the consequences of deviations from equilibrium.
Explanation:
The question provided involves understanding market equilibrium, supply and demand functions, and the impact of externalities on supply curves in the context of electricity generation. The demand and supply functions for electricity are described by P=12-0.5Q and P=2+0.5Q, respectively, before accounting for externalities. When externalities are considered, the supply curve shifts to P=3+0.5Q, indicating an increase in the real social cost of electricity generation by $1 per unit. Equilibrium is reached when the demand equals supply, allowing us to solve for equilibrium price and quantity. Additionally, the effect of prices above and below equilibrium is explored, demonstrating the concepts of excess supply (surplus) and excess demand.
After a producer determines that the demand for one of its products is inelastic, why would this firm probably raise the price of this product?
Consumer demand would probably increase.
The firm’s costs of production would probably decrease.
The firm’s total revenues would probably increase.
Competition would decrease.
The answer is: The firms total revenue would increase.
A product would be categorized as 'inelastic' if the change in price of the product wouldn't affect the number of demand that the sellers receive for the products much.
Because of this, increasing the price of the products would most likely resulted in an increase in revenue. Usually, inelastic products tend to be the ones that considered as basic necessities such a foods, gas, oil, clothing, etc.
In a perfectly competitive market, all producers sell identical goods or services. additionally, there are many buyers and sellers. because of these two characteristics, both buyers and sellers in perfectly competitive markets are price . true or false: the market for public utilities, like gas and electricity, does exhibit the two primary characteristics that define perfectly competitive markets.
a. True
b. False
Answer: Price takers, False
Explanation:
A perfectly competitive market is a market in which there are a large number of buyers and sellers, there is free entry and exit in this market. The buyers and sellers are price takers in this market.
While, entry in the gas and electricity market is restricted. The firms selling gas and electricity has full control over the price of these two products. Thus, the above statement is false that gas and electricity, does exhibit the two primary characteristics that define perfectly competitive markets.
Answer:false
Explanation:
Decisions don't come easily within the group. team members vie for position as the attempt to establish themselves in relation to other team members and the leader, who might receive challenges from team members." the above description is typical of which stage of team development
The answer is "Stage 2 Storming".
This is where teachers may initially experience group struggle. Amid this stage, the group makes its first endeavor at dealing with the task. Right now, colleagues may differ on jobs for each colleague, particularly if different colleagues need to be the venture pioneer or another looked for after position. Another difference may emerge when colleagues can't concur on a methodology or procedure to finish the task.