Suppose we are analyzing the market for hot chocolate. Graphically illustrate the impact each of the following would have on demand or supply. Also show how equilibrium price and quantity have changed. Consumer income falls because of a recession and hot chocolate is considered a normal good. Producers expect the price of hot chocolate to increase next month. Currently, the price of hot chocolate is $0.50 per cup above equilibrium

Assume the following demand and supply equations: Qd=900-20P, and Qs=150+10P. a) Calculate the slopes of the two curves b) Calculate the equilibrium price and quantity c) If the price was $30, how much would the quantity demanded be? d) If the price was $30, how much would the quantity supplied be? e) At a price of $30, is there a shortage or a surplus? How can you tell?

Demand and supply often shift in the retail market for gasoline. Here are two demand curves and two supply curves for gallons of gasoline in the month of May in a small town in Maine. Some of the data are missing.  Using the table, answer the following questions:                            Quantities Demanded              Quantities Supplied Price D1 D2 S1 S2 $ 4.00 5,000 7,500 9,000 9,500   6,000 8,000 8,000 9,000 2.00   8,500   8,500     9,000 5,000   Instructions: Enter your answers as whole numbers. A) use the following facts to fill in the missing data in the table. If demand is D1 and supply is S1, the equilibrium quantity is 7,000 gallons per month. When demand is D2 and suppy is S1, the equilibrium price is $ 3.00 per galllon. When demand is D2 and supply is S1, there is an excess demand of 4,000 gallons per month at a price of $ 1.00 per gallon. If demand is D1 and supply is S2, the equilibrium quantity is 8,000 gallons per month.  B) Compare the two…

Consider the demand for pomegranates in two different countries. In Country A, pomegranates are a critical part of the diet and are central to preparation of many recipes. For most of these recipes, there is no feasible substitute for pomegranates. In Country B, households will purchase pomegranates if the price is right, but consumers do not consider them to be particularly special or unique, and few dishes use pomegranates. Suppose pomegranates are native to both countries and due to limited shipping options are not traded. Also suppose that droughts and other weather-related shocks periodically cause unexpected changes in supply conditions. Use the information above sketch a model of how the market for pomegranates in Country A and in Country B would respond to the supply volatility in each country. Then, use your findings to plot the price of pomegranates across time in Country A and Country B. Explain which country will see more volatile prices and why.

Listed below are several items which would affect the market for personal computers. For each event, do the following: 1) Tell whether the event shifts demand or supply, 2) tell whether the curve increases or decreases, and 3) report the predicted change in price and quantity of personal computers. a) A fall in the price of software b) A government subsidy to computer makers c) A decrease in consumers' income due to a recession d) An increase in the price of silicon (used in making all kinds of computer chips like CPU's, memory chips, etc.).

Demand and supply often shift in the retail market for gasoline. Here are two demand curves and two supply curves for gallons of gasoline in the month of May in a small town in Maine. Some of the data are missing.Using the table, answer the following questions:                                              Quantities Demanded                                 Quantities Supplied Price D1 D2 S1 S2 $7.00 5,000 7,500 9,000 9,500   6,000 8,000 8,000 9,000  5.00   8,500   8,500     9,000 5,000   Use the following facts to fill in the missing data in the table. If demand is D1 and supply is S1, the equilibrium quantity is 7,000 gallons per month. When demand is D2 and supply is S1, the equilibrium price is $6.00 per gallon. When demand is D2 and supply is S1, there is an excess demand of 4,000 gallons per month at a price of $4.00 per gallon. If demand is D1 and supply is S2, the equilibrium quantity is 8,000 gallons per month.  b. Compare the two equilibriums: In the first,…

The demand curve shows the relationship between price and quantity demanded and they are negatively related either in the table or in the graph. True False ) Listen If demand increases and supply simultaneously decreases in the market, equilibrium price will always rise. True False

Identify the flaw in this analysis: “If more Bahamians go on a low-carb diet, the demand for pasta will fall. The decrease in the demand for pasta will cause the price of pasta to fall. The lower price, however, will then increase the demand. In the new equilibrium, Americans might end up consuming more pasta than they did initially.”

Assume the demand curve for gasoline is downward sloping and the supply curve is upward sloping. Start by considering the gasoline market in 2020. Draw a graph that shows supply and demand analysis for gasoline in this city. Label the supply curve as S0; demand curve as D0; the equilibrium price as P0; and equilibrium quantity as Q0.

Find the equilibrium price and quantity for a product that has the following supply and demand curves, where p is the price in 100's of dollars and q is quantities in 1,000's of units demand: 1/3q + 1/3p - 4=0 Supply: q-p-2=0 If the product is currently priced at $400, what is the quantity supplied and the quantity demanded? Is there a surplus (More supplied than demanded) or a shortage (More demanded than supplied)