“I’m working as a restaurant consultant. My clients are Amy’s Diner and Joe’s Burger Stop. Both restaurants are in the same neighborhood. They have similar menus that include hamburgers, French fries, and soft drinks. This week, Amy’s supplier raised the price of hamburger meat, but Joe’s has not. Can you help me explain how the supply and demand model works in the situations described below?”

Suppose goods X and Y are complimentary products.  Which of the following are correct with respect to the competitive market model of supply and demand? (check all that apply) an increase in the price of good Y will cause an increase in demand for good X and reduce the quantity demanded for good Y an increase in the price of good Y will cause a decrease in demand for good X and reduce the quantity demanded for good Y a decrease in the price of good X will increase the quantity demanded for good X and cause a decrease in demand for good Y a decrease in the price of good X will increase the quantity demanded for good X and cause an increase in demand for good Y

The island nation of Coconutistan recently suffered an unfortunate accident which took its water treatment plant offline, leaving residents without clean water in their homes. The plant for bottling water was unaffected by the accident. The graph shows the supply and demand for bottled water before the accident. Assume that $6 is the maximum price for a case of bottled water according to the price gouging laws on the island. Shift one or more curves to show the effect of the accident on the market for bottled  water. Price ($)Quantity of bottled water by the case01002003004005006007008009001,000012345678910SupplyDemandPrice ceiling What is the amount of the shortage after the accident? shortage:

The demand curve for rooms at a hotel in Oakland is given by PD = 250 - 1.5*QD. The supply curve of rooms for the same hotel in Oakland is given by Ps = 45 + Qs. The equilibrium quantity is rooms and the equilibrium price is $.

Each rectangle on the graph corresponds to a particular seller in this market: blue (circe symbols) for Andrew, green (triangle symbols) for Beth, purple (diamond symbols) for Darnell, tan (dash symbols) for Eleanor, and orange (square symbols) for Jacques. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at a market price of $70. (Note: If a person will not sell a motor scooter at the market price, indicate this by leaving their rectangle in its original position on the palette.) ? PRICE (Dollars per motor scooter) 160 140 120 100 180 60 40 20 0 0 Andrew 2 K Bet Darnell Jacques Eleanor 5 3 QUANTITY (Motor scooters) Market Price 6 7 8 ITI Andrew Beth Damell Eleanor 8 8 Jacques

Assume that the market for soap in Cintra is perfectly competitive. Demand is downward sloping and supply is upward sloping. All consumers and firms are identical. a) The government introduces a requirement that firms must make soap from biodegradable material only. Firms now need to use more costly ingredients to produce soap. What is the predicted impact of this restriction on market price and quantity in the Cintra soap market? Explain your reasoning. A diagram is not an explanation. Your explanation needs to be sufficient without a diagram. b) Data from the 2021 flu season shows a decrease in both market price and market quantity in the Cintra soap market. Over this same period, the price of hand sanitizer fell. Claim: The change in the price of hand sanitizer could explain the changes in the soap market. Agree, Disagree or It depends? Explain your reasoning. A diagram is not an explanation. Your explanation needs to be sufficient without a diagram.. c) Flu season has started. More…