Explain what would happen in the following markets given the following demand or supply shocks. In your answer clearly state what happened to supply or demand (whether it increased or decreased) and what would likely happen to the equilibrium price and quantity as a result, other factors constant. Market: Electric vehicles. Shock: Due to the recently enacted CHIPS Act, there is a significant decrease in the price of U.S. semiconductors, which are used as an input in the production of electric vehicles. Market: In home exercise equipment. Shock: Due to the waning concerns around the COVID-19 pandemic and loosening restrictions, U.S. consumers go back to gyms and public recreational centers. Market: U.S. Cotton. Shock: There is a significant drought in the Southwestern U.S., where the majority of U.S. cotton is grown.Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.

In a market for a commodity, any deviation from the equilibrium state creates an instability in the…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Explain what would happen in the following markets given the following demand or supply shocks. In your answer clearly state what happened to supply or demand (whether it increased or decreased) and what would likely happen to the equilibrium price and quantity as a result, other factors constant.

Market: Electric vehicles. Shock: Due to the recently enacted CHIPS Act, there is a significant decrease in the price of U.S. semiconductors, which are used as an input in the production of electric vehicles.

Market: In home exercise equipment. Shock: Due to the waning concerns around the COVID-19 pandemic and loosening restrictions, U.S. consumers go back to gyms and public recreational centers.

Market: U.S. Cotton. Shock: There is a significant drought in the Southwestern U.S., where the majority of U.S. cotton is grown.

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

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