Video Games: Problem Set

4) For each article describe causes of changed price and the effects of the changed price.

#5. Other things equal, what effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram to show the expected effects on the equilibrium price level and the level of real output.

3. Repeat the Question 2 analysis, but now assume that the new marketing program is implemented.

Fill in the matrix below and describe how changes in price or quantity of the goods and services affect either supply or demand and the equilibrium price. Use the graphs from your book and the Tomlinson video tutorials as a tool to help you answer questions about the changes in price and quantity

Suppose a frost destroys much of the Florida orange corp. At the same time, suppose consumer tastes shift toward orange juice. What would we expect to happen to the equilibrium price and quantity in the market for orange juice?

The figure show the event where the amount of demand and supply deceased simultaneously. When the both demand and supply move simultaneously like that the price of equilibrium can be higher, lower or stay the same. In this article the best way to describe the situation is panel ‘A’ where is both supply and demand curve are shifted to the left where it show the

10 pts draw and explain increase in technology and how it effects the graph: Supply increases so it is cheaper to produce. The supply curve shifts to the right because more quantity produced. Price also decreases.

1) Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this information you can conclude that

One factor that might have shifted this demand curve is a change in taste and/or preferences. Say this demand curve was for popcorn. When people really like and want popcorn the demand curve will shift. Another factor that might have shifted this demand curve is a change in price for a complement like cheese spread. If the price of cheese spread for popcorn is reduced then the demand for cheese spread and thus popcorn would increase, shifting the demand curve for popcorn.

2. Draw graphs to illustrate the difference between a decrease in the quantity demanded and a decrease in demand for Mickey Mantle baseball cards. Give a possible reason for change in each graph.

1) I thought that the price of a good changed from the quantity that was available. Would you explain why it is the opposite?

Before you complete this assignment, I suggest that you again review Chapter 3 and my lecture material provided this week. There are some basic principles which must be followed when constructing supply and demand graphs, for example, price is always on the vertical axis and output (quantity) on the horizontal axis.

Rise in price will see a greater quantity supplied (quantity will rise), shift in supply curve. (McTaggart, 2010), (Layton, 2009).

Supply and demand is based on a certain level of market competition. The shifts of these curves are an attempt to find a common ground between businesses and their consumers. They strive to find a price to which the consumers would be willing to spend their money and at a level of which the company would be willing to sell their products. Once this level is reached equilibrium of price and quantity demanded is created and they no longer push against each other, both parties are happy.

Makers of the hybrid cars need to evaluate the prices of other cars that are comparable and base its prices upon those results. Also, creating a bigger selection of hybrids to choose from would also be a plus. Therefore, if there is a big selection of these cars,