8. Explain what happens to equilibrium price and quantity when the demand curve shifts left (you can draw a graph to help with your explanation).
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- 9. Explain what happens to equilibrium price and quantity when the demand curve shifts right (you can draw a graph to help with your explanation). 10. Explain what happens to equilibrium price and quantity when the supply curve shifts left (you can draw a graph to help with your explanation).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) 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. Ⓒ 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.If consumers often purchase muffins to eat while they drink their lattes at local coffee shops, what would happen to the equilibrium price and quantity of lattes if the price of muffins falls? Hint: Drawing the supply and demand curves may help you answer the questions. Group of answer choices Both the equilibrium price and quantity would increase Both the equilibrium price and quantity would decrease. The equilibrium price would increase, and the equilibrium quantity would decrease. The equilibrium price would decrease, and the equilibrium quantity would increase.
- The figure above shows a market that is originally at equilibrium at Point A, the intersection between been supply curve S1 and demand curve D1. Which of the following events would result in the market reaching a new equilibrium at Point C? Question 10Answer a. An increase in supply and a decrease in the quantity demanded. b. A decrease in supply and an increase in the quantity demanded. c. A decrease in the quantity supplied and a decrease in demand. d. A decrease in supply and a decrease in the quantity demanded.Use supply and demand curves to illustrate how each of the following changes will affect the equilibrium price and quantity of the stated product, ceterus paribus. Before you guess, answer the following questions: (1) Which determinant has changed? (2) Will it affect supply or demand? (3) Will supply or demand increase or decrease? (4) GRAPH IT! What happens to price and quantity? 1. The government provided subsidies for the farmers to improve their irrigation facilities. How would this improvement affect the equilibrium price and quantity of rice? 2. Wood furniture prices increase. How would this affect the equilibrium price and quantity of steel furniture? 3. During a recession, economies experience increased unemployment and a reduced level of activity. How would a recession be likely to affect the equilibrium price and quantity of new cars? 4. The government imposes a nationwide lockdown due to pandemic. How would this affect the market and equilibrium price of…1. Suppose you are selling t-shirts at your own t-shirt stand. The supply and demand curves for t-shirts are given below. P= 10 + 0.2 Q P= 20 – 0.2 Q a. What is the equilibrium quantity for t-shirt Number b. What is the equilibrium price for t-shirts? Number If the process of making your t-shirts results in chemical waste that you dump in a nearby stream, creating $ 8 worth of damage to the environment per shirt, what is the socially optimal number of t-shirts for you to sell? C. Number d. Given the chemical waste in part c., what is the socially optimal p Number e. What tax policy could the government use to assure that you sell the socially optimal number of t-shirts? for List
- 3. Suppose that the market for bananas in Binghamton on an average weekday is given by the following equations: P = 48 – 2Q P = 24 + 2Q demand: supply: where P is the price of a bushel in dollars and Q is quantity in bushels. a. What is the equilibrium price and quantity? Show graphically. b. Assume that the National Institutes of Health issues a study showing that bananas reduce the risk of cancer. The demand for bananas increases to: demand': P = 60 – 2Q At the original equilibrium price, is there a shortage or a surplus? Of how much? c. What is the new equilibrium price and quantity? Show graphically.Given the following market for breakfast cereal: Supply and Demand II. GRAPH Price (per unit) 0 P. The market is in equilibrium. Market price will not change. Quantity (per unit of time) Show the effect of consumer tastes and preferences declining for this good. Instructions: Use the interactive to model this change. What is the net effect on equilibrium price? [(Click to select) SETTINGS Supply Demand New Equilibrium Update What is the net effect on equilibrium quantity? (Click to select):In the following scenarios, explain if demand would be affected or supply. Which curve(s) shift(s) (if any) and in which direction? Explain the change(s) in the equilibrium price and quantity. Graph you answer as well. a. In the market for laptops, the technology improves while all other factors remain constant. b. In the market for tablet computers, more suppliers enter the market and the price of laptops, a substitute good, increases, while all other factors remain constant. c. what happens in laptops market if both “a” and “b” happens at the same time.
- Suppose the supply curve increases, based on the model of supply and demand explain what happens to equilibrium price and equilibrium quantity. Suppose the demand curve decreases, based on the model of supply and demand explain what happens to equilibrium price and equilibrium quantity.Suppose Jermaine and Tim are the only people in the market. The curve DJ is Jermaine's demand curve and the curve DT is Tim's demand curve. Draw the market demand curve and label it. (If you plot any points to help you draw the curve, you must erase the points before submitting the Problem Set). Price (dollars per bag) 6.00 5.00- 4.00- 3.00- 2.00- 1.00 0.00+ 0 DJ 1 2 3 4 5 6 7 Quantity (bags per month) 8 Q 6.00 5.00- 4.00- 3.00- 2.00 1.00 0.00+ Price (dollars per bag) DT 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity (bags per month) 6.00 5.00 4.00- 3.00- 2.00- 1.00- 0.00+ 0 Price (dollars per bag) -~ 2 4 to 6 8 10 12 14 16 Quantity (bags per month) 18 20 Q QSupply and Demand: End of Chapter Problems 6. Suppose the market for tomatoes is in equilibrium, and events occur that simultaneously shift both the demand and supply curves to the right. If this is the only information you have, what can you say about how the equilibrium price or quantity would be affected? The equilibrium O quantity would increase, whereas the direction of the change in equilibrium price would be indeterminate. price would increase, whereas the direction of the change in equilibrium quantity would be indeterminate. O price and quantity would both decrease. price and quantity would both increase. Question Source: Chiang 4e - Economics Principles For A Changing World Publisher: Worth Publishers a 9:39 PM 64°F 10/13/2021 SP
