Suppose that the U.S. government reduces the tariff on imported coffee, and a reputable study is published indicating that coffee drinkers have lower rates of colon cancer. How would we expect that this will affect the supply curve and why? What would we expect to happen to the demand curve and why? What collective effect will these changes(s) have on the direction of the equilibrium price and quantity?

Consider the market for minivans. For each of the events listed, identify which of the determinants of demand are affected. Use the demand and supply diagram to identify the effects of this change on the equilibrium price and quantity exchanged of minivans. People decide to have more children. The price of station wagons rises.

Last year, a man shared a video on TikTok of himself longboarding to work while drinking a bottle of OceanSpray juice. This resonated with the online community and kicked off a challenge to reproduce the scene using the same drink. Use the Four-Step method and draw a supply/demand graph to predict the effect on equilibrium price and quantity for OceanSpray. Clearly label your graph and upload it to the dropbox labeled (you may draw it on paper and take a picture, or use some other software).

On September 14th, 2023, the Canadian government threatened major grocers(Loblaws, Costco, Walmart, etc.) with new taxes if they failed to lower their food prices. Assume that the government imposes such taxes. Using a supply and demand diagram,show what effect this has on the equilibrium in the market for food. Does this help tolower food prices? If you were in charge of the government, how would you reduce food prices for Canadian consumers?

Complete each statement below about the demand and supply of bicycles using the dropdown list. In each case, assume everything else remains the same and bicycles are a normal good. You may use the same answer more than once. Consider each scenario described below for the supply of bicycles: • If there was an increase in cost of materials in bicycle production the change in quantity supplied would be modelled as a • If the numbers of bicycle leftward shift of the supply curve htity supplied would be modelled as rightward shift of the supply curve movement along the supply curve a Consider each scenario listed below for the demand of bicycles: • If there was a decrease in the price of a substitute the change in quantity demanded would be modelled as a • If the legacy from the London Olympics encourages more people to cycle to work; the change in quantity demanded would be modelled as a

For each of the following changes in the demand or supply curves in the automobile market below, draw a graph showing the old demand and supply curves as well as the new demand or supply curve (whichever shifts). Also show how the equilibrium price and equilibrium quantity change. Show work on 3 different graphs. With lower trade barriers, foreign automakers export more cars to the U.S. U.S. automobile workers unionize. Due to research and development (R&D), new technologies enable automakers to produce cars much faster.

What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?

Now that you’ve mastered interpreting shifts in demand and supply, it’s time to add an­other wrinkle: simultaneous shifts in both demand and supply. Most of the time, when we explore simultaneous shifts of demand and supply, we can determine the impact on either equilibrium price or equilibrium quantity, but not both. Fill in the missing cells in the table to see why. Because two curves can shift in two directions, there are four cases to consider. The first column is done for you as an example—notice that you will either use an arrow or a question mark.

Over the past 20 years, the average price of avocados has more than doubled. Assume that the price of avocados is determined by the forces of supply and demand.  Using concepts that you have learned about supply and demand, explain whether the following is or is not a cause of the increase in price of avocado.   Restrictions on imports of avocados from Mexico were gradually lifted. Improved production methods allowed for slower ripening of avocados and therefore more avocados can be reliably shipped. Mexican food, which regularly features avocados, has become more popular.

Using supply and demand diagrams show the effects on equilibrium price and quantity for the following situations. Begin at an initial equilibrium and show the effects on the demand or supply curves, as well as the effect on equilibrium price and quantity. (You can just draw them by hand and upload the picture.) The impact of a drought in the Midwest on the market for wheat. The impact of a fall in the price of steel on the market for new cars. The impact of a study showing orange juice consumption lowers the risk of heart attacks on the market for orange juice, and on the market for cranberry juice. The impact of an increase in the price of hot dogs on the market for hot dog buns.