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why the IS curve is called the goods
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- Define equilibrium quantity?In terms of our shift variables of demand and supply, how are each of the following pairs related? Use the demand and supply diagram to identify the effects of an increase in the price of the first good on the equilibrium price and quantity exchanged of the second good. g. leather and shoesh. socks and shoesBeef is a material for beef meatball. We observe that the equilibrium quantity of beef meatball rises. Explain whether or not a rise in the price of beef is responsible for this observation.
- Match the Determinants with the appropriate change in the market for chocolate.What is the equilibrium level ofSuppose the National Institute of Health publishes a study finding that coffee drinking reduces the probability of getting colon cancer. How do you imagine this will affect the market for coffee? Which determinant of demand or supply is being affected? Show graphically with before and after curves on the same axes. How will this change affect the equilibrium price and quantity of coffee? Explain your reasoning.
- Suppose the Mayo publishes a study finding that the caffeine in coffee increases the probability of getting Alzheimer’s. How do you imagine this will affect the market for coffee? Which determinant of demand or supply is being affected? Show graphically with before and after curves on the same axes. How will this change affect the equilibrium price and quantity of coffee? Explain your reasoning.What is the equilibrium quantity?Show, using a supply & demand graph, the effect on the equilibrium price and quantity of the good in question of the following events. Assume markets are initially in equilibrium. These are qualitative answers. An original and new market equilibrium on the graph is needed. Show that clearly. (its a graphing assignment) The market for Bread: The price of lunchmeats (a complement to bread) decreases.
- As the price of GOOD A increases by 20%, the quantity demanded of GOOD B increases by 10%. What is the relationship of the two goods? Show the necessary computation to support your answer.The market price of pizzas in a college town decreased recently, and the students in an economics class are debating the cause of the price decrease. Some students suggest that the price decreased because several new pizza parlors have recently opened in the area. Other students attribute the decrease in the price of pizzas to a recent decrease in the price of hamburgers at local burger joints. Everyone agrees that the decrease in the price of hamburgers was caused by a recent decrease in the price of ground beef, which is not generally used in making pizzas. Assume that pizza parlors and burger joints are entirely separate entities-that is, there aren't places that serve both pizzas and hamburgers. The first group of students thinks the decrease in the price of pizzas is due to the fact that several new pizza parlors have recently opened in the area. On the following graph, adjust the supply and demand curves to illustrate the first group's explanation for the decrease in the price of…Show graphically, in one graph, what would happen to the equilibrium price and quantity of beef if the price of chicken (a substitute) were to decrease.