2. Explain what will be the result of cheaper sugar used in production of cakes at Bread Talks. What factor is this? Draw the graph and show the change. 3 3) Discuss the results of an increase in the price of crude oil for production of petroleum. Discuss how supply and price of petroleum will be changed? What factor is this? Draw the graph and show the change. O If the price of chicken increases, discuss the changes in the market demand for beef. What factor is this? Draw the graph and show the change.

2. Explain what will be the result of cheaper sugar used in production of cakes at Bread Talks. What factor is this? Draw the graph and show the change. 3 3) Discuss the results of an increase in the price of crude oil for production of petroleum. Discuss how supply and price of petroleum will be changed? What factor is this? Draw the graph and show the change. O If the price of chicken increases, discuss the changes in the market demand for beef. What factor is this? Draw the graph and show the change.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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K How will an increase in the number of sellers of tablets affect the market for this product? A. Demand will increase causing the equilibrium price to increase and the equilibrium quantity to increase. OB. Supply will increase causing the equilibrium price to decrease and the equilibrium quantity to increase. OC. Supply will decrease causing the equilibrium price to decrease and the equilibrium quantity to increase. O D. Supply will increase causing the equilibrium price to increase and the equilibrium quantity to decrease.
Suppose that California wildfires destroy one-third of the grape crop in the state. What would be the expected effect on the market for raisins? O increase in equilibrium price, increase in equilibrium quantity O decrease in equilibrium price, increase in equilibrium quantity decrease in equilibrium price, decrease in equilibrium quantity no change in the market for raisins increase in equilibrium price, decrease in equilibrium quanttiy
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3. The variety of demand curves The following graph displays four demand curves (LL, MM, NN, and OO) that intersect at point A. PRICE (Dollars per unit) 200 180 160 140 120 100 80 60 40 20 0 0 20 Statement M N cx B °* O E A N M Đ 40 60 80 100 120 140 160 180 200 QUANTITY (Units) ? Using the graph, complete the table that follows by indicating whether each statement is true or false. Between points A and D, curve NN is inelastic. Between points A and B, curve LL is unit elastic. Curve NN is less elastic between points A and D than curve MM is between points A and C. True False O O O O O O
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Which of the following is true if both the demand for and supply of oranges increase? A. it is clear that prices will increase, the change in the quantity of oranges sold is ambiguous. B. it is clear that quantity sold will increase, the change in the price of oranges is ambiguous. C. it is clear that prices will decrease, the change in the quantity of oranges sold is ambiguous. O D. it is clear that quantity sold will decrease, the change in the price of oranges is ambiguous.
5. Suppose the supply of apples sharply increased because of perfect weather conditions throughout the growing season. Assuming no changes in demand, explain the effect on the equilibrium price and quantity of apples.
Which of the following would cause the price of beef to rise and the quantity to rise? O a. An increase in the price of chicken O b. New regulations regarding the raising of animals that are costly to implement O c. Increased social concern about the negative consequences of beef consumption O d. A reduction in the price of hay and silage (these are both things fed to cows)
6. How would an increase in income for an inferior good affect demand for the good? How would an increase in income for a cheap good affect the demand curve for that good? Show graphically.
Oil refiners can refine a barrel of petroleum so that it yields either more home heating oil or more diesel fuel (i.e., they are related goods). If the price of diesel fuel falls, there is O an increase in the quantity of home heating oil supplied. O an increase in the supply of home heating oil. O an increase in the demand for home heating oil. O a decrease in the quantity of home heating oil supplied. O a decrease in the supply of home heating oil.