A shift outward in the demand curve always results in an increase in total spending (price times

Question:

"A shift outward in the demand curve always results in an increase in total spending (price times quantity) on a good. On the other hand, a shift outward in the supply curve may increase or decrease total spending?" Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Microeconomics and Its Application

ISBN: 978-1133189039

12th edition

Authors: Walter Nicholson, Christopher M. Snyder

See More Books

Question Posted: Oct 07, 2016 11:47 AM

See More Questions

Explain why a shift in the demand curve identifies the supply curve and not the demand curve.
Here is a puzzle. A country with a relatively small positive aggregate demand shock (a shift outward in the AD curve) may have a substantial economic boom, but sometimes countries that have massive...
From November 2010 to March 2011 the price of gold increased from $1,200 per ounce to over $1,800 per ounce. Newspaper articles during this period said there was little increased demand from the...
You are helping your very rich aunt Molly decide where to invest her portfolio. She is planning to take a 10-year world tour after she invests the bulk of her portfolio. She thinks that picking a...
If an entrepreneurs business finds itself in trouble, what are the options available to the entrepreneur to attempt to remedy the situation?
Calculate the future value of a $4,000 CD earning 5.2% interest for 8 years under the following scenarios (use a calculator for the algebraic formula answer, check using the =FV function). (in Excel...
Give a scenario where the multiplicative rule applies. LO5
Harshman Company constructed a building for its own use. The company incurred costs of $ 40,000 for materials and supplies, $ 68,000 for direct labor, and $ 7,000 for a supervisors overtime that was...
1.) Grandpa Clocks, Incorporated (GCI), is a retailer of wall, mantle, and grandfather clocks. Assume GCI sells a grandfather clock for $14,000 cash plus 4 percent sales tax. The clock had originally...
Xootr LLC is the producer of a high-end, award-winning kick scooter, known as the Xootr (pronounced zooter). The basic Xootr model (known as the Ultra Cruz) sells for slightly over $200. The company...
"Gasoline sells for $4.00 per gallon this year, and it sold for $3.00 per gallon last year. But consumers bought more gasoline this year than they did last year. This is clear proof that the economic...
Housing advocates often claim that "the demand for affordable housing vastly exceeds the supply." Use a supply-demand diagram to show whether you can make any sense out of this statement. In...
Magazines are sold both through newsstands and subscriptions. Advertising accounts for up to one-half of the revenues of magazines like Time and Sports Illustrated. How should a publisher determine...
Which industries gain and which industries lose from the availability of cheap natural gas produced from shale deposits? Joseph Schumpeter, an Austrian-born economist who emigrated to the United...
Did the value of the Canadian dollar rise or fall between Tuesday and Wednesday?
As vice president for community relations, you want to explore the possibility of developing service learning programs with several nearby colleges and universities. Using Figure 2.5, suggest the...
Your organization initiated a project to raise money for an important charity. Assume that there are 1,000 people in your organization. Also, assume that you have six months to raise as much money as...
A $20-\mathrm{cm}$-long rod, with uniform linear charge density $100 \mathrm{nC} / \mathrm{cm}$, is set up symmetrically on the $x$ axis. What are the magnitude and direction of the electric...
Find tan 3 x dx.
When is the indirect pattern appropriate, and what are the benefits of using it?
The option on Microsoft stock described in Application 4.4 gave the owner the right to buy one share at $27 one month from now. Microsoft currently sells for $25 per share, and investors believe...
In this problem, you will see why the Equity Premium Puzzle described in Application 4.5 really is a puzzle. Suppose that a person with $100,000 to invest believes that stocks will have a real return...
Consider a simultaneous game in which player A chooses one of two actions (Up or Down), and B chooses one of two actions (Left or Right). The game has the following payoff matrix, where the first...
A family has a $117,443, 25-year mortgage at 5.4% compounded monthly. (A) Find the monthly payment and the total interest paid. (B) Suppose the family decides to add an extra $100 to its mortgage...
Comparing the actual and planned cost of a consulting engagement completed by an engineering firm such as Allied Engineering.
What is the NPV of a project that costs $34,000 today and is expected to generate annual cash inflows of $11,000 for the next 7 years, followed by a final inflow of $14,000 in year 8. Cost of capital...

A shift outward in the demand curve always results in an increase in total spending (price times

Question:

Step by Step Answer:

As the demand curve shifts outwards the equilibrium price as well as equilibrium quantity increases ...View the full answer

Intermediate Microeconomics and Its Application

Students also viewed these Economics questions