The central problem of how to produce is resolved by _________.

demand and supply of factor inputs

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demand and supply of goods

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relative prices and availability of factors of production

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government intervention

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Solution

The correct option is D relative prices and availability of factors of production
The central problem of how to produce is resolved by the relative prices and availability of factors of production. This problem refers to the selection of technique to be used for production of goods and services. Thus when we know the prices and availability of factors of production, we can identify the techniques that should be used to produce a particular combination of goods and services.

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Similar questions

Suppose the demand and supply curves of a Commodity-X is given by the following two equations simultaneously:

Qd = 200 - p

Qs = 50 + 1p i

Find the equilibrium price and equilibrium quantity.

ii) Suppose that the price of a factor of production producing the commodity has changed, resulting in the new supply curve given by the equation

Qs’ = 80 +2p

Analyse the new equilibrium price and new equilibrium quantity as against the original equilibrium price and equilibrium quantity.

Explain how the following factors affect the supply of the commodity (any two)

a) Price of factor inputs

b) State of technology

c) Government taxation Policy

Experts please can I get a help for my economics project .

Topics are -

1) make a list of products for weight you think demand in price inelastic and price elastic . Specifying the reason you may think relevant for your analysis.

2) Develop a hypothetical table at information for coffee that shows quantity demanded at various price and supply of coffee at this price . Draw a demand curve and supply curve and show and equilibrium price at which market is cleared of its supply.

Q. Other factors remaining constant, when price of a commodity rises, there is _______ of supply.

Suppose the value of demand and supply curves of a Commodity-X is given by the following two equations simultaneously:

Qd = 200 –10p Qs = 50 + 15p

i) Find the equilibrium price and equilibrium quantity of commodity X.

ii) Suppose that the price of a factor inputs used in producing the commodity has changed, resulting in the new supply curve given by the equation

Qs’ = 100 + 15p

Analyse the new equilibrium price and new equilibrium quantity as against the original equilibrium price and equilibrium quantity.

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