3. Supply and Demand Shifts Read the article at the end of this exam entitled “Gen Z Isn't That Into Dining Out. Here's How Restaurants Are Chasing Them." In the first paragraph of the article, it mentions the soaring ingredient prices, labor shortages and issues in encouraging Gen Z customers to their respective establishments. These factors have and continue to impact both the demand and the supply for restaurants on a macro level. | A. Based upon this statement from the article, what direction has the supply curve shifted? B. Based upon this statement from the article, what direction has the demand curve shifted? C. Based upon these two shifts, what would happen to the equilibrium quantity? Would it decrease, increase, or be indeterminate? D. Based upon these two shifts, what would happen to the equilibrium price? Would it decrease, increase, or be indeterminate?

57 00:22-13 Mc Graw Hill Multiple Choice In which of the following instances will the effect on equilibrium price be dependent on the magnitude of the shifts in supply and demand? supply falls and demand remains constant supply rises and demand falls demand rises and supply falls demand rises and supply rises Save & Exit Submit

Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute. The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022. The cost of each good in the basket as well as the basket's total cost are given for 2020. Perform these same calculations for 2021 and 2022, and enter the results in the following table. Streaming services Iced coffees Textbooks Notebooks Energy drinks Total cost Price index Quantity in Basket 1 150 10 8 40 Suppose this price index uses 2020 as the base year. Price (Dollars) 64 Between 2020 and 2021, the UPI increased by 2020 2 80 2 3 Cost (Dollars) 64 300 800 16 120 1,300 100 Price (Dollars) 104 2 85 2 4 2021 Cost (Dollars) In the last row of the table, calculate and enter the value of the UPI for the remaining years. % Between 2021 and 2022, the UPI increased by Price (Dollars) 134 2 105 4 5 % 2022 Cost (Dollars)

Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans. Which curve will shift: supply or demand? In which direction will the curve shift: right or left? (It may help to use a demand and supply diagram to conduct your analysis.)  a. The number of people at the most common ages for home-buying decreases.    b. Rents rise extremely rapidly.  c. Banks that have made home loans find that a larger number of people than they expected are not repaying those loans.  d. Because of a threat of a war, people become uncertain about their economic future.The overall level of saving in the economy diminishes.  e. The federal government changes its bank regulations in a way that makes it cheaper and easier for banks to make home loans.

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Suppose the following transactions occur during the current year: 1. Kevin orders 50 cases of mezcal from a Mexican distributor at a price of $90 per case. 2. A U.S. company sells 300 spark plugs to a Korean company at $5.00 per spark plug. 3. Rajiv, a U.S. citizen, pays $900 for a TV he orders from Cosmart (a U.S. company).   Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current year. Hint: Be sure to enter a “0” if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative.   Amount (Dollars) Consumption   Investment   Government Purchases   Imports   Exports   Net Exports   Gross Domestic Product (GDP)

An NBC News headline on April 27, 2020 states “Groceries could see meat shortages by end of week amid plant closings”. (https://www.nbcnews.com/news/us-news/groceries-could-see-meat-shortages-end-week-amid-plant-closingIs-n1193401 Within the story is a subheading “Tyson Foods warns “supply chain is breaking” amid coronavirus pandemic.” The article states “Beef, chicken and pork could be as scarce as toilet paper soon because so many meat processing plants have been temporarily shut down amid the coronavirus pandemic, industry experts are warning.”For the sake of simplicity, let’s consider the market for pork. Draw a supply and demand graph that illustrates what is happening in the market for pork and explain what will happen to the total revenue of pig farmers and to total revenues of Tyson Foods as a result?

Next, complete the following graph 2 "not pictured", labeled Scenario 2, by shifting the supply and demand curves in the same way that you did on the Scenario 1 graph.

Ch: 22!  Economics

Please answer everything in the photo.