Consider the following measures and draw a suitable supply-demand diagram for each. In addition to the measure itself, this diagram should also show the prices prevailing on the market, the quantity traded, the
[Note: If your drawing becomes too confusing, you can also draw two diagrams (before/after). In that case, make sure that both diagrams are exactly the same size and that all unchanged elements are drawn in identically].
2a) In order to reduce alcohol consumption in the population, the government sets an effective minimum
2b) To promote new technologies and boost the production of electronic components ("chips"), the federal government repeals the producer tax on this market.
2c) The local cinema is the only one far and wide. To sell more tickets, instead of a single price for all show times, it now offers tiered prices according to morning, afternoon and evening tickets.
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- Next, complete the following graph 2 "not pictured", labeled Scenario 2, by shifting the supply and demand curves in the same way that you did on the Scenario 1 graph.arrow_forwardSuppose 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 Yarrow_forwardPlease explain as detail as possible, thanks.arrow_forward
- Don’t know what steps to take to be able to solve correctlyarrow_forwardUse the information/statement below to answer questions: 10. Because of exceptionally good weather conditions, this year's supply of-eucumber in Batinah is 20% greater than last year's supply. Assume that once cucumber is grown, the supply curve for cucumber is perfectly inelastic. Also assume that the demand curve for cucumber is the same this year as it was last year. If the price of cucumber is 25% lower this year than it was last year, what can we conclude? 10. The price elasticity of demand for cucumber is: a. -1.25 b. -1.00 © - 0.80 d. -0.25arrow_forwardHomework (Ch 05) The following graph input tool shows the daily demand for hotel rooms at the Peacock Hotel and Casino in Las Vegas, Nevada. To help the hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool. Demand Factor Initial Value $50,000 per year Average American household income Roundtrip airfare from San Francisco (SFO) to Las Vegas (LAS) $200 per roundtrip Room rate at the Grandiose Hotel and Casino, which is near the Peacock $250 per night 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. Graph Input Tool 500 Market for Peacock's…arrow_forward
- Hello Please answer C, D, E Thanks Mahboobarrow_forward#13arrow_forwardPLEASE MAKE A SUPPLY AND DEMAND GRAPH BASED ON THIS EXPLAINATION The high demand for onions in the Philippines combined with low supply has led to an increase in prices. The average monthly demand for onions in the country is around 17,000 metric tons but the current supply is not enough to meet the demand. This has resulted in a shift in the demand curve to the right and the supply curve to the left, causing the market equilibrium to move from point E to point F, resulting in an increase in both price and quantity. Reason of the shift: The price increase of onions in the Philippines can be attributed to several factors, including global inflation, failure of the agriculture department to make accurate supply projections, possible internal price manipulation, and a shortage of supply due to smuggling.arrow_forward
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