So, if per capita income falls": (a) the supply of flour will shift to the left. (b) the quantity of flour supply will fall. c) The demand for flour will shift
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For each of the alternatives below, explain for each one whether it is true, false or uncertain, based on the following statement:
"Flour is an inferior good. So, if per capita income falls":
(a) the supply of flour will shift to the left.
(b) the quantity of flour supply will fall.
c) The
d) The demand for flour will shift to the left.
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- What is a relevant example of how a change in the market (including information, preferences, technology, price of alternative goods, regulations, taxes, etc.) has shifted either the supply or demand of a good. How did this change affect the market equilibrium for that good or service? Explain. Next, find a relatively recent news article (within the past year) to support your finding (the news search feature in Google is helpful with this). If you cannot find an article specific to your example, you may find an article about another similar good or service. Talk about the article and its findings, then include the URL.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, solve all the parts and subparts. i. News reports claim that the consumption of Ice Cream is good for the health of coronavirus patients. ii. There has been a decline in wages of all employees in Pakistan due to the third wave of coronavirus. iii. People in Pakistan decide to have more children. iv. Students of NED University develop new automated machinery for the production of Ice Cream. v.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…what is the best description of a normal good? demand decreases when income increases demand increases when population increases demand increases when income increases demand decreased when popilation increases
- For each of the statements below, select the option that best describes what would happen to the equilibrium price and quantity in the market (noted in italics). Price up, quantity down e. Price down, quantity uncertain Price up, quantity up f. Price up, quantity uncertain Price down, quantity down g. Price uncertain, quantity up Price down, quantity up h. Price uncertain, quantity down ____ 1. Banana consumers experience a decrease in their income (assume bananas are an inferior good). ____ 2. Shoe manufacturers experience an increase in the price of raw materials such as leather and rubber. ____ 3. U.S. consumers of jelly (to make PB&J sandwiches) witness an increase in the price of peanut butter caused by an increase in supply. ____ 4. Consumer enthusiasm for vacations increases air travel at the same time jet fuel costs are…1) Consider the market for tires. Suppose the price of raw rubber increases. What is the expected effect in the market for tires? Group of answer choices the equilibrium price will rise; equilibrium quantity will fall the equilibrium price will fall; equilibrium quantity will rise the equilibrium price will fall; equilibrium quantity will fall the equilibrium price will rise; equilibrium quantity will rise 2) Consider the market for tires. Suppose the price of gas drops and remains low for many years. Consequently, people drive more often. What is the expected effect in the market for tires? Group of answer choices the equilibrium price will rise; equilibrium quantity will fall the equilibrium price will fall; equilibrium quantity will rise the equilibrium price will fall; equilibrium quantity will fall the equilibrium price will rise; equilibrium quantity will rise 3)The diagram below represents the market for battery packs. The equilibrium price and…Demand, Supply, and Market Equilibrium - Think of a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc...). Explain how the law of demand affected your purchase. Give specific examples of how the determinants of demand and supply affect this product (T-I-P-E-N and P-R-E-S-T). What happens to the demand curve and the supply curve when any of these determinants change? What would cause a change in demand versus a movement along the same demand curve for this product? How would you determine the new equilibrium price and quantity that result from these changes? Can you demonstrate some of these changes graphically? Price Elasticity of Demand - Consider a product that you have purchased recently. If the price of this item increases, how would you adjust your purchases? Is the Demand for this product Price Elastic or Price Inelastic? Justify your classification by applying the determinants of elasticity to…
- Consumers are told that the consumption of cauliflower will significantly reduce the risk of cancer. Which of these scenarios is likely to happen in the cauliflower market? A) The supply curve will shift to the right, causing the price of cauliflower to rise. B) The supply curve will shift to the right, causing the price of cauliflower to fall. C) The demand curve will shift to the right, causing the price of cauliflower to rise. D) The demand curve will shift to the left, causing the price of cauliflower to fall.Think of a relevant example in your own life of how a change in the market (including information, preferences, technology, price of alternative goods, regulations, taxes, etc.) has shifted either the supply or demand of a good. How did this change affect the market equilibrium for that good or service? Explain. Next, find a relatively recent news article (within the past year) to support your finding (the news search feature in Google is helpful with this). If you cannot find an article specific to your example, you may find an article about another similar good or service. Summarize the article and its findings, then include the URL in your discussion post. 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.A warm, dry summer means that the English pear harvest is exceptionally good. At the same time, a new diet in which pears have an important role becomes fashionable. Which of the following do we expect to happen in the market for pears? a) Demand curve shifts left, supply curve shifts right, and price decreases. b) Demand curve shifts right, supply curve shifts right, and quantity traded increases. c) Demand curve shifts right, supply curve shifts left, and price increases. d) Demand curve shifts left, supply curve shifts down, and quantity traded decreases.
- (a) Assume 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. (i) Discuss the impact of the good harvest on each of the three markets. (ii) 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?(a) Assume 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.(i) Discuss the impact of the good harvest on each of the three markets.(ii) Discuss the effect on the markets for each of the three products if thegovernment 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? (b) Identify a newspaper article that illustrates a market failure in Barbados. NOTE: Only the following market failures should be examined: public good,asymmetric information, positive or negative externality.(i) Provide a brief summary of the main points in the article. (Maximum 30 words)(ii)Identify the type of…X is an inferior good. If there is an increase in incomes, then (quantity supplied,quantity demanded, supply, demand) for good X will (increase, decrease). This will cause the equilibrium price to (increase, decrease) and quantity to (increase, decrease). If a new type of fertilizer is invented that makes coconut trees twice as productive, the (quantity supplied, quantity demanded, supply, demand) for coconuts will (increase, decrease). This will cause the price to (increase, decrease) and quantity to (increase, decrease).
