Question

Consider the market for tourist or vacation hotel and motel rooms in the vicinity of Disneyland...

Consider the market for tourist or vacation hotel and motel rooms in the vicinity of Disneyland (in Anaheim, California), a normal good. Assume this market is approximately perfectly competitive.  

What happens if there’s a recession, and incomes of consumers fall?

There's an increase in demand

There's an increase in supply

There's a decrease in demand

There's a decrease in supply

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Because it is a normal good increase in income causes the increase in demand and if there is a decrease in income there would be decrease in demand and the demand curve shift to the left

Therefore (c) is a decrease in demand is the answer to this question

However the incomes of the people decrease and the good is normal, then there is decrease in in demand and not increase and also the consumers income is related to demand and not supply

Therefore (a,b,d) are wrong

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Mark “T” for true and “F” for false. 1. A perfectly competitive market consists of products...
Mark “T” for true and “F” for false. 1. A perfectly competitive market consists of products that are all slightly different from one another. 2. An oligopolistic market has only a few sellers. 3. The law of demand states that an increase in the price of a good decreases the demand for that good. 4. If apples and oranges are substitutes, an increase in the price of apples will decrease the demand for oranges. 5. If golf clubs and golf...
In the market for hot dogs, what happens when the price of beef goes up and...
In the market for hot dogs, what happens when the price of beef goes up and the price of hot dog buns goes up? [hot dogs are made of beef. Also, the term "hot dog" here refers to just the sausage. So you buy hot dogs at the store. And you also buy "hot dog buns" at the store. This gets confusing for some people, especially non-native English speakers] What happens to supply and demand in the market for hot...
Here are ten multiple-choice questions. Thanks!!! 1. To incentivize young people to go to college within...
Here are ten multiple-choice questions. Thanks!!! 1. To incentivize young people to go to college within their home state, state universities can: A) charge higher tuition to in-state students. B) award special scholarships to out-of-state students. C) offer high-interest loans to in-state students. D) offer lower tuition to in-state students. 2.Adam Smith’s concept of the invisible hand refers to his belief that: A) market failure is a myth. B) self-interest can lead to a “prisoner’s dilemma” where everyone is worse...
1.) True or False? For all societies, resources are scarce, and technology is limited, while people’s...
1.) True or False? For all societies, resources are scarce, and technology is limited, while people’s wants and needs for goods and services seem to be unlimited. (2 points) 2.) (1 point) Adam Smith’s “invisible hand” refers to a.) the subtle and often hidden methods that businesses use to profit at consumers’ expense. b.) the ability of free markets to reach desirable outcomes, despite the self-interest of market participants. c.) the ability of government regulations to benefit consumers, even if...
1-As we move up the demand curve, the price elasticity of demand * A) increases B)...
1-As we move up the demand curve, the price elasticity of demand * A) increases B) decreases C) becomes unitary D) does not change 2-If the price of lemonade increases relative to the price of grape juice, the demand for: * A) grape juice will decrease. B) grape juice will increase. C) lemonade will decrease. D) lemonade will increase. 3-An increase in price will result in no change in total revenue if: * A) the percentage change in price is...
1.            The law of demand states that: a)            There is a direct or positive relationship between...
1.            The law of demand states that: a)            There is a direct or positive relationship between the price of a commodity and the quantity demanded. b)            The quantity demanded will be higher the lower is its price. c)            The quantity demanded will be lower the lower is its price. d)            The quantity demanded will be higher the higher is its price. 2.            The law of supply states that: a)            There is a direct or positive relationship between the quantity supplied...
1. Which is the most accurate definition of the study of economics? [1] Distributing surplus goods...
1. Which is the most accurate definition of the study of economics? [1] Distributing surplus goods to those in need. [2] Dealing with affluence in a morally bankrupt world. [3] Using scarce resources to satisfy unlimited human wants. [4] Reducing human wants to eliminate the problem of scarcity. 2. Computer software represents [1] labour. [2] land. [3] capital. [4] entrepreneurship. 3. Suppose you have graduated with a degree in accounting and are offered a job with an accounting firm. But...
1. The amount of __________increases when the economy goes into a recession and decreases when the...
1. The amount of __________increases when the economy goes into a recession and decreases when the economy goes into an expansion. a. structural unemployment b. seasonal unemployment c. cyclical unemployment d. frictional unemployment 2. It is difficult for cyclically unemployed persons to find jobs because a. they typically do not meet the qualifications required for the available jobs. b. the economy is in a recession. c. they voluntarily quit their last jobs and employers may view them as unreliable. d....
What is Medicare Part C? Provides the aged with home health care Provides the aged with...
What is Medicare Part C? Provides the aged with home health care Provides the aged with prescription drugs Enables low-income aged to participate in Medicaid Provides a voluntary managed care option for the aged How is Medicaid financed? It is financed entirely by the federal government. It is financed entirely by the state. States receive the same percentage of federal support. States with lower per capita incomes receive a greater percentage of federal support If a healthcare system is "free"...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT