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Homework answers / question archive / 1)Which of the following factors of production is a natural resource or natural input? Farmland Financial assets Equipment Labor
1)Which of the following factors of production is a natural resource or natural input? Farmland Financial assets Equipment Labor.
2)Use the following example to illustrate David Ricardo's principle of comparative advantage, repeating each step of the process outlined in Question 1. Explain also how both countries can gain frorf trade, even though Brazil has the absolute advantage in both wheat and autos. Argentina Brazil Output per worker Wheat Autos 1.5 0.5 2 1 Total labor supply 12 12.
3)Suppose that the consumers expect the price of phones to be $100 per unit next year. A news report comes out that claims phones will be only $50 per unit next year. Assuming there is no change in supply currently, which of the following will happen to the current equilibrium price and quantity of phones?
a. Price of phones rises. Quantity of phones rises.
b. Price of phones rises. Quantity of phones falls.
c. Price of phones falls. Quantity of phones rises.
d. Price of phones falls. Quantity of phones falls.
e. Price of phones changes in an uncertain direction. Quantity of phones rises.
I know what the answer is, but I need an explanation please. I understand why the price of phones would fall, but I'm unsure about the quantity. If customers expect the price phones to be $100 but find out it'll be $50 next year, wouldn't customers wait to buy a phone until next year for the price to be $50? Then the quantity would increase since there are no buyers?
1.Option A Farmland Land includes the resources of nature that can be used for the production of goods and services. Land includes all natural physical resources like fertile farm land, good temperature or climate, fertile soil and even harnessing wind power , use of solar energy etc. It is s natural factor of production and natural input.
2.Please use this google drive link to download the answer file.
https://drive.google.com/file/d/14WPUpn7Y_frKcDnDYb9DOxf1aXbg2NBQ/view?usp=sharing
Note: If you have any trouble in viewing/downloading the answer from the given link, please use this below guide to understand the whole process.
https://helpinhomework.org/blog/how-to-obtain-answer-through-google-drive-link
3.Option d is correct
Both price and quantity would fall.
When consumers postpone their decision to buy phones, demand for the phones at present would fall (left shift of demand curve), with supply being the same. This would mean a lower equilibrium price and quantity (intersection of new demand with supply curve).
(quantity being traded in the market is determined by the buyers who are now less willing to buy the phones)
