Scenario 5.1 The Demand for Noodles Is Given by the Following Equation

question 94

Multiple Choice

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10.
-Economists have said that deregulation of the electric utility industry might lead to increased prices in the short run, but prices will fall in the long run. In this context:

• A)the short run means the middle of next year.
• B)the short run means the period after all adjustments have been made, and the quantities of all resources have been varied as necessary.
• C)the long run means after all adjustments have been made, the quantities of all resources have been varied as necessary, and new market entrants begin producing electricity.
• D)the short run means the period after new firms begin producing electricity.
• E)the long run means approximately ten years.

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Definitions:

Function

A correspondence between an array of inputs and a choice of outputs, with the rule that each input associates with just one output.

Speed

The rate at which an object moves, calculated as distance traveled per unit of time.

\(f ( x )\)

A symbolic representation of a function in terms of \(x\), where \(f\) denotes the function and \(x\) represents the variable.

Graph

A diagram representing mathematical relationships between variables, typically plotted with an x-axis and a y-axis.