ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 4, Problem 4.6P
To determine
Supply curve assumptions and the factors that shift the supply curve to the right.
Concept Introduction:
Supply curve shows all the possible combinations of
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2.2. Use a diagram to illustrate what will happen to the equilibrium price and quantity of a product
if the demand for the product increases. Also mention three factors that can cause an increase in
demand.
(10)
(Table: Equilibrium Price, Quantity) Refer to the table. If the demand curve for the product shifted to the right such that 10 more units of the good are demanded at
every price, what is the new equilibrium price?
P
$10
12
14
16
18
0000
$12
$14
$16
$18
Q₁
50
45
40
35
30
0.
30
35
40
45
30
(Table: Equilibrium Price, Quantity) Refer to the table. If the supply curve for the product shifted to the right such that 20
more units of the good are supplied at every price, what is the new equilibrium price?
P
Qa
50
$10
30
12
45
35
14
40
40
16
35
45
18
30
50
$12
O $10
$14
$16
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Similar questions
- Using Exercise 16.20, sketch the effects in parts (a) and (b) on a single supply and demand diagram. What prediction would you make about how the improved information alters the equilibrium quantity and price?arrow_forward(Figure: Supply Shift) What would cause the supply curve to shift from S2 to S1 as shown in the diagram? Price $100 S2 80 60 40 20 10 20 30 40 50 Quantity a decrease in the costs of production an expected decrease in the future price of the good a decrease in the opportunity costs of producing the good an increase in the prices of inputs used in productionarrow_forward13. Supply and Demand Consider the following events: Researchers shows that eating lobsters increases the risk of heart attack, and at the same time, there is a new regulation that limit the number of lobsters people can fish. Show the effect of these two events on the market for lobsters. Supply Demand Supply Demand Quantity of Lobsters When the demand curve and supply curve shift in the directions indicated on this graph, you can be certain about the effect on without knowing the magnitude of the shifts. Price of Lobstersarrow_forward
- The market for pizza has the following demand and supply schedules: Price (Dollars) 4 10 5 6 7 8 9 9 Quantity Demanded Quantity Supplied Į (Pizzas) 135 115 100 90 60 45 Use the blue points (circle symbol) to graph the demand for pizzas. Then use the orange points (square symbol) to graph the supply of pizza. Finally, use the black point (plus symbol) to indicate the equilibrium price and quantity in this market. (Pizzas) 15 50 75 90 100 105 ?arrow_forward3. Suppose that the market for lima beans is in equilibrium. Then, both the supply and demand curves for lima beans shift to the left. As a result, the equilibrium price. and the equilibrium quantity will (a) will fall; rise (b) cannot be determined; fall (c) will fall; fall (d) cannot be determined; risearrow_forward(Figure: Supply Curves) The figure shows four different supply curves for four products. Which one of the supply curves MOST likely represents a crop that takes a long time to grow? Product A Product B Price Supply product A product B product C product D Quantity Price Supply Quantity Price Product C Supply Quantity Price Product D Supply Quantityarrow_forward
- [Choose the correct answer] Which diagram illustrates the effects on the peanut butter market, if severe flooding destroys a large portion of the peanut crop in the economy?arrow_forward8. Define Supply/ Demand. Then explain what happens to supply/ demand when price goes up/ down. Supply: Price 1= Supply: Demand: Demand: Price 1= Supply: Demand:arrow_forward7. Draw the supply and demand curve for pencils. Clayton county provides every student with a laptop at school. What happens to the supply and demand for pencils. Why?arrow_forward
- 6) Ilustrate the law of Demand by showing the differences between the changes of quantity demanded and the changes of demand? (Give example by using diagram)arrow_forwardellobrate the factors that will be affecting the supply of the following products in the next several years.why do you think the factors will cause the supply to increase or decrease? Crude oil, hotle rooms, Beef, Fast food outlets, Laptop companiesarrow_forward13. How shifts in demand and supply affect equilibrium Consider the market for pens. Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch from pencils to pens in school. Moreover, the price of ink, an important input in pen production, has dropped considerably. On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move curve and it snaps back to its original position, just drag it a little farther.arrow_forward
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