Moving Equilibrium. Show the effect of each on the monopoly market equilibrium; you don't need to have exact answers but explain the direction of change in the demand and/or marginal cost curves.

Note: Taylor sells beef bourguignon (ingredients include beef and carrots) and crème brûlée.

a. Beef prices rise.

b. There is blight, and carrots are in short supply at higher prices.

c. Taylor loses her good pastry chef. The new chef is hired at the same wage but the crème brûlée quality is off.

d. A local restaurant reviewer praises the quality of her boeuf.

Question

Business

Corey Schroeder

16 January, 01:21

Moving Equilibrium. Show the effect of each on the monopoly market equilibrium; you don't need to have exact answers but explain the direction of change in the demand and/or marginal cost curves.

Note: Taylor sells beef bourguignon (ingredients include beef and carrots) and crème brûlée.

a. Beef prices rise.

b. There is blight, and carrots are in short supply at higher prices.

c. Taylor loses her good pastry chef. The new chef is hired at the same wage but the crème brûlée quality is off.

d. A local restaurant reviewer praises the quality of her boeuf.

+2

Answers (1)

Know the Answer?

Jack Henson · Answer 1

a. Beef prices rise.

Explanation:

Beef is commonly utilized as a supplement to tomatoes. When the cost of other commodities increases, the demand for it is a supplement, falls, this would make the interest bend, of tomatoes, move leftward side. This would move the minimal cost bend descending.

The appeal for a feast in a café will likewise expand the interest of the kitchen. This would build the excitement for tomatoes, and subsequently, the interest bend will move rightward.

On the off chance that a commentator applauds the nature of Ella's ratatouille, there will be an expansion sought after for ratatouille. Along these lines, the interest bend will move rightward.