Use the graph to answer the question that follows. Price ($) P₂ 2 Q₂ Q₁ Quantity .D2 An increase in income when good A is an inferior good Which of the following best explains the shift from D1 to D2 for Good A in this graph? An increase in the number of consumers in the market ‚S₁ 1 O An increase in the price of a substitute good for good A A decrease in the number of producing firms D₁

Consider the market for beer in the diagram below: Price (S) 70 60 50 40 30 20 10 D 100 200 300 400 500 600 700 800 900 1,000 Beer (millions of cases) Suppose demand shifts to the right by 200 million cases of beer. What would be the new equilibrium price and quantity of beer as a result of this increase in demand? $55 and 500 million cases of beer $65 and 500 million cases of beer $55 and 550 million cases of beer $60 and 600 million cases of beer

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,…

no handwritten notes