Graphically explain the effect of the following on the equilibrium: (1) Offer of subsidies (2) Increase in price of factors of production (3) Increase of young population in a destination commonly known for consumption of elderly products (4) Improvement of technology (5) Increase in price of one of a complementary good
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Graphically explain the effect of the following on the equilibrium:
(1) Offer of subsidies
(2) Increase in
(3) Increase of young population in a destination commonly known for consumption of elderly products
(4) Improvement of technology
(5) Increase in price of one of a complementary good
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- Draw a demand and supply graph for each of the following questions. For each question, start by drawing a correctly labeled graph of the market for cookies in equilibrium. Your starting graphs should each have correctly labeled axes and demand and supply curves. Label the equilibrium price and quantity as p1 and p2 on the axes of each of the starting graphs. Show the effect on the equilibrium price and quantity in the market for cookies if the price of flour decreases. Determine which curve is affected by the change in the price of flour and whether it increases or decreases. On your graph, draw a new curve indicating the shift—either to the right or the left. Label the new equilibrium price and quantity as p2 and q2.Demand and supply often shift in the retail market for gasoline. Here are two demand curves and two supply curves for gallons of gasoline in the month of May in a small town in Maine. Some of the data are missing. Using the table, answer the following questions: Quantities Demanded Quantities Supplied Price D1 D2 S1 S2 $ 4.00 5,000 7,500 9,000 9,500 6,000 8,000 8,000 9,000 2.00 8,500 8,500 9,000 5,000 Instructions: Enter your answers as whole numbers. A) use the following facts to fill in the missing data in the table. If demand is D1 and supply is S1, the equilibrium quantity is 7,000 gallons per month. When demand is D2 and suppy is S1, the equilibrium price is $ 3.00 per galllon. When demand is D2 and supply is S1, there is an excess demand of 4,000 gallons per month at a price of $ 1.00 per gallon. If demand is D1 and supply is S2, the equilibrium quantity is 8,000 gallons per month. B) Compare the two…Answer the following questions The amount by which the quantity supplied of a product exceeds the quantity demanded at a specific price? It occurs when the market price is above the equilibrium price These are called products and services that are used together; when the price of one falls, the demand for the other increases
- Demand and supply often shift in the retail market for gasoline. Here are two demand curves and two supply curves for gallons of gasoline in the month of May in a small town in Maine. Some of the data are missing.Using the table, answer the following questions: Quantities Demanded Quantities Supplied Price D1 D2 S1 S2 $7.00 5,000 7,500 9,000 9,500 6,000 8,000 8,000 9,000 5.00 8,500 8,500 9,000 5,000 Use the following facts to fill in the missing data in the table. If demand is D1 and supply is S1, the equilibrium quantity is 7,000 gallons per month. When demand is D2 and supply is S1, the equilibrium price is $6.00 per gallon. When demand is D2 and supply is S1, there is an excess demand of 4,000 gallons per month at a price of $4.00 per gallon. If demand is D1 and supply is S2, the equilibrium quantity is 8,000 gallons per month. b. Compare the two equilibriums: In the first,…Assume that Grainland currently produces wheat and does not trade wheat in international markets. (a) Draw a correctly labeled demand and supply graph for the domestic wheat market in Grainland. Label the equilibrium price, PePe, and the equilibrium quantity, QeQe. (b) Suppose the price of wheat in the world market is lower than the domestic price of wheat in Grainland. Assume now Grainland wants to trade wheat in the world market. (i) On your graph from part (a), label the world market price of wheat as PWPW, and identify the domestic quantity demanded of wheat at PWPW, as Q3Q3, and the domestic quantity supplied of wheat labeled as Q1Q1. (ii) Will Grainland export or import wheat? Explain. (c) With international trade in wheat, who will benefit in Grainland: domestic producers, domestic consumers, neither or both? Explain. (d) Suppose that the government of Grainland decides to provide a subsidy for wheat farmers to make the country more competitive and sell wheat at the world market…Please Help Me: Draw a demand and supply graph for each of the following questions. For each question, start by drawing a correctly labeled graph of the market for cookies in equilibrium. Your starting graphs should each have correctly labeled axes and demand and supply curves. Label the equilibrium price and quantity as p1 and p2 on the axes of each of the starting graphs. Show the effect on the equilibrium price and quantity in the market for cookies if the price of milk increases. Determine which curve is affected by the change in the price of milk and whether it increases or decreases. On your graph, draw a new curve indicating the shift—either to the right or the left. Label the new equilibrium price and quantity as p2 and q2. Show the effect on the equilibrium price and quantity in the market for cookies if the price of flour decreases. Determine which curve is affected by the change in the price of flour and whether it increases or decreases. On your graph, draw a new…
- Consider a market for Ice Cream an inferior good in Pakistan. For each of the given events, identify which of the determinants of the demand or supply are affected. Also indicate whether demand or supply increase or decreases. Then draw a diagram to show the effect on the price and quantity of Ice Cream and solve all the subparts: News reports claim that the consumption of Ice Cream is good for the health of coronavirus patients. There has been a decline in wages of all employees in Pakistan due to the third wave of coronavirus. People in Pakistan decide to have more children. Students of NED University develop new automated machinery for the production of Ice Cream. There has been a decrease in people’s income due to COVID-19 crisis. i News reports claim that the consumption of Ice Cream is good for the health of coronavirus patients. identify which of the determinants of the demand or supply are affected. Also indicate whether demand or supply increase or decreases…Price si S2 C D2 D1 Quantity Which of the following would result in equilibrium shifting from point C to point A?Discuss the two main types of related goods according to demand and supply analysis
- Price S1 S2 D D2 D1 Quantity In the graph above, which of the following would result in equilibrium shift from point C to point A? There was an increase in income and technology advanced. There was a decrease in income and technology advanced. There was an increase in the price of a complement and an increase in wages paid by the firms. There was a decrease in the price of complement and an increase in wages paid by the firm. There was an increase in the number of buyers but the number of firms remained unchanged.The following table shows the annual demand and supply in the market for shoes in Miami. Price (Dollars per pair of shoes) 20 40 60 80 PRICE (Dollars per pair of shoes) 120 100 20 On the following graph, plot the demand for shoes using the blue point (circle symbol). Next, plot the supply of shoes using the orange point (square symbol). Finally, use the black point (plus symbol) to indicate the equilibrium price and quantity in the market for shoes. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 0 100 0 Quantity Demanded (Pairs of shoes) 1,100 900 800 200 600 500 400 600 800 QUANTITY (Pairs of shoes) Quantity Supplied (Pairs of shoes) 200 400 500 900 1000 1,200 1200 O Demand Supply EquilibriumAssume that the markets for sugar cane, rum and whiskey are initially in equilibrium (i.e., supply equals demand in each case). Assume further that a good harvest impacts the world’s sugar cane crop. Sugar cane is a principal ingredient in rum, but it is not an ingredient in whiskey. Rum and whiskey are substitutes in consumption. Discuss the impact of the good harvest on each of the three markets. Discuss the effect on the markets for each of the three products if the government implements a price restriction in the sugar cane market with the aim of protecting the farmers. How will this impact the revenues for sugar growers, rum producers and whiskey producers?
