In the market for coffee, the price has declined by 20% and at the same time the quantity sold has increased by 10%. What was the cause of these changed: an increase in supply an increase in demand  a decrease in supply a decrease in demand

Suppose favourable weather increased the supply of tomatoes so that the price of tomatoes fell from US$45 a ton to US$35 a ton and quantity sold increased from 300 tons to 420 tons. What is the value of the price elasticity of demand? Show your work.

Discuss how the equilibrium price and quantity change when a change in supply occurs and the demand stays constant.

Under what circumstances would demand for a product rise when its price increases?

Which of these will shift the demand for coffee? Which will shift supply? What will be the effect on the equilibrium price and quantity? Draw graphs to illustrate your answer a. A new study announces unexpected health problems associated with coffee b. An unusually cold winter occurs in the US (temperatures unchanged in coffee producing countries) c. A new technique is developed that allows coffee to be produced more cheaply d. You win the lottery and have more disposable income e. The price of tea decreases f. Unionization of coffee workers raises wages paid by coffee growers.

Question 7

Which of the following scenarios would definitely cause the price of good or service to decrease? (Check all that apply.) decrease in demand; increase in supply increase in demand; decrease in supply increase in demand; increase in supply increase in demand; no change in supply decrease in demand; no change in supply no change in demand; decrease in supply no change in demand; increase in supply decrease in demand; decrease in supply

Suppose that many vineyards in California were burned by wildfires during and shortly after the release of the movie Sideways. If both the quantity sold and price of Pinot Noir increased in the market after the movie release, what does this imply?   Select one: a. The decrease in supply was greater than the increase in demand. b. The increase in demand was greater than the decrease in supply. C. The increase in supply was greater than the decrease in demand. d. The decrease in demand was greater than the increase in supply.

During the Civil war, if shopkeepers expected the price of butter to increase in the future, what would happen to the supply of butter today?

You are studying the market for a particular brand of perfume. You notice that a couple of changes are happening in the market at the same time. The flower that creates the perfume scent has been affected by a disease. In addition, consumers begin to worry about the safety of the ingredients that are used in the perfume. What do you expect will happen to the equilibrium price and the equilibrium quantity? Explain your answer, include the necessary graphs.