Suppose cauliflower and broccoli are substitutes in consumption. Suppose further that the supply of cauliflower increases. Everything else held constant, consumer surplus in the broccoli market and economic surplus in the will broccoli market will Select one: A. decrease; decrease В. decrease; increase С. increase; increase D. increase; decrease E. be ambiguous; decrease F. be ambiguous; be ambiguous

Given demand and supply equation as follows: Qd = 100 - 5P Qs = 20 + 5P a) find the equilibrium Price. (2 Marks) b) find the equilibrium quantity (2 Marks) c) if the market price is $10, is there a shortages or surplus (1 Mark) d) at price $10 what is the amount of shortages or surplus (1 Mark) show your calculations В I !

1.Suppose quantity demanded for good z is given by QDz= 500 -50PZ+ 10Y -42PX, where x and z are two different goods and Y represents income. a.ls good x a normal or inferior good? b.ls good z a normal or inferior good? C.Are goods x and z complements or substitutes? d.Now suppose quantity supplied for good z is given by QSz =50PZ-400. Let's also assume Px= $1 and Y = 10. Find equilibrium price and quantity. e.ls the market equilibrium efficient? How do you know? 2. Suppose that when the firm charges a price of $24 per unit they sell 17 units. When they drop the price to $21 per unit they sell 18 units. If we assume the demand curve is linear and nothing else is changing, then find an equation for the demand curve

Answer the questions. Please draw graphs, instructions on word for how to draw the graph is not enough. Let X1 on the horizontal axis and X2 on the vertical axis. (a) Suppose two ordinary goods X1 and X2 are substitutes in consumption. Using BLs and ICs, graphically derive the demand curve for X1. Explain your graph.(b) If X2 is a Giffen good, how to derive the demand curve for X2?(c) Is the inferior good the same as the Giffen good? Why or why not?

ii. llustrate this shift in a diagram.iii. Show that sugar is a complement for coffee.

In each problem, you must explain the scenario’s effect on the market. If the quantity supplied or the quantity demanded changes, state how (increase or decrease). If instead, the scenario meets one of the criteria above, indicating there is a shift. If one of the curves shifts, state why and the direction it shifts (left or right). You should then state the effect on price (increase or decrease)..⦁   You are a wheat farmer. Locusts attack your wheat.                  ⦁   Price of gasoline goes up. You own a gas station.                  ⦁   The price of corn goes up. You normally plant soybeans.                     ⦁   The price of peanut butter goes up. You sell jelly.       ⦁   Your patent runs out on your popular and necessary drug.              ⦁   Amazon has picked your small town to be their new worldwide headquarters.        ⦁   The country is going into a recession. You sell jewelry.          ⦁   The price of TVs just decreased by 20%.                     ⦁   Your product was…

If the demand curve for Good A shifts leftward when the price of Good B decreases, these two goods are _________. Select one: a. complements b. inferior c. normal d. substitutes

Two goods are complements when a decrease in the price of one good O decreases the quantity demanded of the other good. O decreases the demand for the other good. O increases the quantity demanded of the other good. increases the demand for the other good.

Consider the market gold, if people expect a lower future price of gold. Change in demand?  Change in supply? Change in market equlibrium price? Change in market equlibrium quantity? Graph?

Which of the ff. is correct with regards to the demand curve? A. If the price of the good increases, the demand curve for the good will shift to the left B. If the price of the good increases, the consumers have the incentive to look for substitutes, thus, the quantity demanded and its price are inversely related C. Income of the consumers is written on the vertical axis D. Varying preferences of the consumers is reflected in the demand curve and is written on the horizontal axis