Business, 16.03.2020 22:57, kactus

The market for russet potatoes is in equilibrium, and it's a perfectly competitive increasing-cost industry. The price of potatoes is currently $6 per 100-pound sack. Low carbohydrate diets suddenly become popular, and many people substitute cauliflower and other vegetables for potatoes. As a result, demand for potatoes falls. What will happen to the price of potatoes in the short run and in the long run

Answers: 3

Show answers

Answers

answered: 2023greenlanden

Answer in explanation

Explanation:

In this question, we are asked to state what will happen to the price of potatoes in the short and long run giving some happenings.

Firstly, we identify that the market for the russet potatoes are in equilibrium with a price of $6 per 100-pound sack.

Now, due to dietary changes, low carbohydrates diet become suddenly popular. This made the availability of substitutes for the russet potatoes. Hence, there is a demand loss for Russet potatoes. Having considered the market properties of the Russet potatoes, it is expected that the price of the russet potatoes will fall. This is principally due to the law of demand. Hence, in the short run, the price is expected to fall below the $6 mark.

What will happen in the long run?

Since it’s a perfectly increasing cost market, there would surely be a bull run later on with the price getting higher than what is expected in the short run. This however does not say anything about if the price would rise above the initial $6 mark

answered: Guest

answer: life insurance

explanation:

answered: Guest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Other questions on the subject: Business

Business, 21.06.2019 23:00, gobbler80

Employees of dti, inc. worked 1,600 direct labor hours in january and 1,000 direct labor hours in february. dti expects to use 18,000 direct labor hours during the year, and expects to incur $22,500 of worker’s compensation insurance cost for the year. the cash payment for this cost will be paid in april. how much insurance premium should be allocated to products made in january and february?

Answers: 1

continue

Business, 21.06.2019 23:30, nicollexo21

San ruiz interiors provides design services to residential and commercial clients. the residential services produce a contribution margin of $450,000 and have traceable fixed operating costs of $480,000. management is studying whether to drop the residential operation. if closed, the fixed operating costs will fall by $370,000 and san ruiz’ income will

Answers: 3

continue

Business, 22.06.2019 02:00, mckinley2006

What is an example of a good stock to buy in a recession? a) cyclical stock b) defensive stock c) income stock d) bond

Answers: 1

continue

Business, 22.06.2019 05:50, marjae188jackson

Acompany that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. prior to buying the new equipment, the company used 6 workers, who produced an average of 79 carts per hour. workers receive $16 per hour, and machine coast was $49 per hour. with the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour while output increased by four carts per hour. a) compute the multifactor productivity (mfp) (labor plus equipment) under the prior to buying the new equipment. the mfp (carts/$) = (round to 4 decimal places). b) compute the productivity changes between the prior to and after buying the new equipment. the productivity growth = % (round to 2 decimal places)

Answers: 3

continue

Do you know the correct answer?

The market for russet potatoes is in equilibrium, and it's a perfectly competitive increasing-cost i...