Consider the market for automobiles, and draw representative supply and demand curves. a)   Suppose that the price of gasoline rises, and at the same time, the price of steel (an input to automobile production) falls. Show this on your graph. If you have no other information, what can you say about the change in equilibrium price and quantity? b)   Now suppose that you have the additional information that the rise in gasoline prices has been relatively large, while the reduction in steel costs has been relatively small. How would this change your answer to (a)?

Consider the market for pens. Suppose that the number of students who are allergic to the rubber used in pencil erasers increases, leading more students to switch from pencils to pens in school. Further, the price of ink, a major input in the pen production process, has increased sharply. On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. 10 P 2 1 D 10 9 3 2 1 0 Next, complete the following graph, labeled Scenario 2, by shifting the supply and demand curves in the same way that you did on the Scenario 1 graph. 0 1 2 Scenario 1 3 Scenario 2 Supply Demand Supply 5 6 QUANTITY (Millions of pens) Equilibrium Object Price Quantity Demand 7 8 9 10 -o Demand Supply Scenario 1 (?) Demand Compare both the Scenario 1…

For each of the following articles below, analyze the impact of a change in demand or a change in supply or both (or it may not necessarily illustrate a change) on price equilibrium price, market price) for the good under consideration and draw the appropriate graph for each article. Use D., S.. P., and O. to symbolize initial demand, supply, equilibrium price and quantity respectively. Use D,, S., P., and Q, to represent the new demand, supply, equilibrium price and quantity respectively 1. Monthly average crude oil prices plunged 50% between January and March. Prices reached an historic low in April with some benchmarks trading at negative levels They are expected to average $35 per barrel in 2020, a sharp downward revision from the October forecast and a 43% drop from the 2019 average of $61 per barrel The downward revision reflects an historically large drop in demand. The decline in crude oil prices has been exacerbated by uncertainty around production agreements among the…

Please answer all parts.

Show the change graphically for a simultaneous decrease in demand and a increase in supply. For each scenario, state how equilibrium price and quantity changes.  What is the conclusion of these changes (can you say for certainty what direction to equilibrium quantity and price changes)? Recall you have three sets of graphs here. Demand changes by a larger magnitude than Supply Demand changes by a smaller magnitude than Supply Demand and Supply changes by the same magnitude.

DS Determinants of supply The following calculator shows the supply curve for sedans in an imaginary market. For simplicity, assume that all sedans are identical and sell for the same price. Two factors that affect the supply of sedans are the level of technical knowledge-in this case, the speed with which manufacturing robots can fasten bolts, or robot speed-and the wage rate that auto manufacturers must pay their employees. Initially, the graph shows the supply curve when robots can fasten 2,500 bolts per hour and autoworkers earn $25 per hour. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Thousands of dollars) 8 20 10 0 0 Supply 100 200 300 400 500 600 700 800 900 QUANTITY (Sedans per month) Graph Input Tool Supply for Sedans Price of a Sedan (Thousands of…

Construct a graph (diagram) for this question without an explanation. What will happen to the equilibrium price and quantity of coffee if it is discovered that coffee helps to prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee? Assume the responsiveness of supply is greater than the responsiveness of demand

The following graph shows the supply curve for sedans in an imaginary market. For simplicity, assume that all sedans are identical and sell for the same price. Two factors that affect the supply of sedans are the level of technical knowledge—in this case, the speed with which manufacturing robots can fasten bolts, or robot speed—and the wage rate that auto manufacturers must pay their employees. Initially, the graph shows the supply curve when robots can fasten 2,500 bolts per hour and autoworkers earn $25 per hour. Suppose that the price of a sedan increases from $21,000 to $26,000. This would cause the quantity supplied of sedans to ________ (options: increase, decrease) , which is reflected on the graph by a ________ (options: shift of, movement along) the supply curve.  Suppose the workers' union negotiates a pay raise. This causes a _________ (options: leftward movement along, rightward movement along, leftward shift of, rightward shift of) the supply curve because the pay raise…

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Question 1 Consider a rice farmer planting two (2) types of rice, white and brown rice, concurrently in his rice field using the same resources and technology and harvesting them at the same time. Given that consumers like to mix both white and brown rice in their daily consumption, explain the effect on the white rice market when the price of brown rice increases. Support your answers with suitable white rice market diagrams. Consider a farmer that produces both white and brown rice. It is discovered that the demand for brown rice is relatively more inelastic compared to the demand for white rice. Initially the price of both white and brown rice is the same and the farmer produces the same quantity of white and brown rice. Now there is an improvement in agricultural technologies that affect both white and brown rice equally. Employ the demand and supply model to compare and contrast the effects on the equilibrium price and quantity of both white and brown rice…