Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 2, Problem 11CQ
To determine
Changes in the
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Economics: Private and Public Choice (MindTap Course List)
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- Which of the following would result in equilibrium shifting from point C to point A? A. There was an increase in income and technology advanced. B. There was a decrease in income and technology advanced. C. There was an increase in the price of a complement and an increase in wages paid by the firms. D. There was a decrease in the price of a complement and an increase in wages paid by the firms. E. There was an increase in the number of buyers but the number of firms remained unchangarrow_forwardGiven what you have learned about 1) demand (and its determinants) and quantity demanded and 2) supply (and its determinants) and quantity supplied. Peanut crops have been destroyed by fungus. Consumers are substituting almond butter for peanut butter because they perceive it to be a healthier option. The prices of both peanut butter and almond butter are rising. Why? Since peanuts were destroyed by fungus this will lead to a decrease in the supply of peanuts used to make peanut butter. A decrease in supply will lead to an increase in the price of peanut butter. Almond butter is being used as a substitute for peanut butter because it is healthier. This will increase demand which will increase the price. Am I in the right ballpark here as to why both prices increased? A graph will really help me grasp how to solve this. Thank youarrow_forwardDefine Availability of substitutes?arrow_forward
- A government report comes out saying that drinking tea daily has great health benefits. This will cause the price of tea to [Select] and the quantity of tea bought and sold to [Select]arrow_forwardWhy would a shift in supply or demand happen as a result in a market equilibrium with higher prices but lower sales volume?arrow_forwardWhat is a relevant example of how a change in the market (including information, preferences, technology, price of alternative goods, regulations, taxes, etc.) has shifted either the supply or demand of a good. How did this change affect the market equilibrium for that good or service? Explain. Next, find a relatively recent news article (within the past year) to support your finding (the news search feature in Google is helpful with this). If you cannot find an article specific to your example, you may find an article about another similar good or service. Talk about the article and its findings, then include the URL.arrow_forward
- What sort of shift in supply or demand would result in a market equilibrium with higher prices but lower sales volume? What might cause such a shift?arrow_forwardwhat sort of shift in supply or demand would result in a market equilibrium with higher prices but lower sales volume?arrow_forwardQuestion 1 According to a researcher at the FDA, vegan foods are “the way if the future”. More persons have become health conscious and are looking for foods which will fit this lifestyle. One such food is the Beyond Burger, a plant-based alternative to beef. Notably, despite strong demand for beef burgers, the supply chain has seen a host of disruptions that are preventing producers from getting their products to market. Beyond Burger’s sales in Canada totaled $3.0 billion at the end of 2021, accounting for 20% of all retail sales of burger patties (meat used in burgers), and 40% of the larger market for vegan foods. By the end of 2025, sales of Beyond Burgers are projected to make up 40% of all burger sales. i. Illustrate and explain the effect of the increased use of Beyond Burgers on (i) the burger patties market and (ii) the vegan market. ii. How the supply chain issues affected the beef burger market and describe how this would be corrected without the introduction of the vegan…arrow_forward
- Consider the market for cars. Car producers expect the price of cars to increase next month. What will happen to the supply curve right now? Group of answer choices A The current supply of cars will decrease (a shift in the entire curve) B The current supply of cars will increase (a shift in the entire curve) C The current quantity supplied for cars will increase (a movement along the curve) without a shift in the curve D The current quantity supplied for cars will decrease (a movement along the curve) without a shift in the curvearrow_forwardThis is the market for steer. Steer are processed into 1 hide and 1 beef. Initial Demand for hides: Q = 70 -P Initial Demand for beef: Q = 100- 0.5P Market supply for steer: Q =-35 + 0.5P New Scenario: The demand for beef rises. People are now willing to pay 80% more than what they used to pay for beef. Hints: you must correctly calculate the new equation for hides to get this question correct. If you feel stuck, try some prices with the original demand for beef and your new demand for beef. Are people willing to pay 1.8 tim as much for each quantity of beef? If so, you have correctly calculated your new Deef Curve. • For example, with the initial demand, people are willing to pay $160 for 20 beef and $100 for 50 beef. the new scenario, the new demand curve needs to show that people are now willing to pay $288 for 20 beef and $180 for 50 beef. a) Calculate new market Q and P for steer b) Calculate new market Q and P for hides c) Calculate new market O and P for beefarrow_forwardGraphically show how each of the following affects the demand curve. Also explain which factor of demand is being affected in each case: Salt is a “Neutral Good”. If income increases, how does it affect the demand for salt? What happens to the demand for Bus Rides when the Metro Rail starts running?arrow_forward
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