Sometimes price cuts can have an unintended result of consumers waiting for deeper discounts. What does this waiting suggest about supply and demand?
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Sometimes price cuts can have an unintended result of consumers waiting for deeper
discounts. What does this waiting suggest about supply and demand?
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Solved in 2 steps
- Suppose an increase in demand in the market for mutual funds (a financial capital market) causes the interest rate to increase from 2% to 4%. How will this increase in demand affect supply and quantity supplied?When the covid-19 shock started in early 2020, supermarkets quickly ran out of toilet paper as panic buying took place and its price remained the same. In that case demand was higher as compare to supply and by the time goods was disappear from the market?How does a sudden decrease in consumer confidence due to a significant political event impact the demand for luxury goods in an economy?
- What impact do policy interventions have on the supply and demand equilibrium for a product?Imagine you are the owner of a natural gas company. You can either extract as much of the resource as fast as possible or delay extraction until a future time. Projections indicate that the price of natural gas is expected to fall in the future. What would you do in the present? a. Sell as much natural gas as possible now and less in the future—reflected by a rightward shift of the current supply curve in the future. B. Sell as much natural gas as possible now and less in the future—reflected by a movement down the current supply curve.C. Sell as much natural gas as possible now and less in the future—reflected by a movement up the current supply curve.D. Sell as little natural gas as possible in the present and delay extraction until the future—reflected by a leftward shift of the current supply curve in the future.Sellers expect the price of a good to rise in the near future. How will this affect the current supply of the commodity. No need of diagram. Just theoritical explaination required.
- Provide two reasons why were consumer good shortages in planned economies (such as the Soviet Union) so severe?what happens to the market price for rental cars as a result of the demand shockSupply and demand is a very important way to judge how prices are determined in our economy. You will need to focus on a recent price change that you have experienced when going to the grocery store. Identify why the price increased based on the determinant of supply and demand. Analyze the impact of why the price change occurred and explain the challenges that firms will be facing to raise prices on consumers.
- Why expectation for future prices is one of the factors that can affect supply?economist at the Ministry of Labour argues that the policy change will ultimately hurt consumers. Use a diagram to explain her thinking.Real (inflation-adjusted) tuition costs were nearly constant during the 1960s despite a huge increase in the number of college students as the very large Baby Boom generation came of age. What do these constant tuition costs suggest about the supply of higher education during that period? When the much smaller Baby Bust generation followed in the 1970s, real tuition costs fell. What does that fact suggest about demand relative to supply during the 1970s?