A drought in the Midwest has reduced the production of wheat used to make cereal.  At the same time, the national price of milk (a compliment good) has increased.  Given these two effects, what will happen to the current equilibrium quantity and price of cereal?

Demand for cookies is of the following form: P=20-4QD, where QD is millions of cookies demanded per year and P is price in US dollars. Supply of cookies of the following form: P=6+Qs, where QS is millions of cookies supplied per year and P is price in US dollars. a. What is the equilibrium quantity of cookies traded? Solve the equation, showing your work. b. Graph the supply and demand curves, marking their intersection. Be sure to label intercepts, equilibrium, etc. c. The government imposes a tax of $2 per cookie on producers of cookies. What is the new equilibrium quantity of cookies traded? Solve the equation, showing your work. d. In a graph, show how the supply curve has shifted. What price do consumers now pay? After paying the tax, how much to producers receive.

New iPhones are normal goods. What will happen to the equilibrium price and quantity in the market for iPhones if the price of Android phones rises, the wages for iPhone chip makers increase, more buyers enter the market for iPhones, and the price of iPhone batteries increase? quantity will rise and the effect on price is ambiguous. quantity will fall and the effect on price is ambiguous. price will rise and the effect on quantity is ambiguous. price will fall and the effect on quantity is ambiguous.

Show in a diagram the effect on the demand curve, the supply curve, the equilibrium price, and the equilibrium quantity of each of the following events. (a) The market for hotel rooms in your town Case 1: The wages of housekeepers go up. Case 2: A major political meeting will be held in your town, attracting many visitors across the country. (b) The market for bagels Case 1: People realize that bagels are high in calories and sugar, which could cause overweight and other health issues. Case 2: People have less time to cook breakfast in the morning. (c) The market for the Krugman and Wells economics textbook Case 1: Your professor makes it required reading for all of his or her students. Case 2: Printing costs for textbooks are lowered by the use of cheaper paper.

If the price of Pepsi increases, what will happen to the market price of Coke?

Most people demand goods and services much less than they want. True or False? Explain your answer. How might the price of wheat affect the supply of rice?

How would [1] a decrease in the price of flour and [2] an improvement in technology of pizza making would affect the market price and quantity of pizza, other things remaining constant? The price of pizza would drop and the equilibrium quantity would rise. The price of pizza would drop but the impact on the equilibrium quantity is uncertain. The equilibrium quantity of pizza would rise but the impact on price is uncertain. Both the price as well as the equilibrium quantity of pizza would rise.

What are some general factors that can impact the demand for a product and the supply of a product? Identify at least two factors for each and explain the different ways these determinants can shift supply and demand either left or right.

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

how does a decrease in price affect the supply and demand curve?