Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 4, Problem 6SPPA
To determine
To express the effect of increased production of crude oil on the
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Draw a supply and demand curve for oil. The government says we can no longer import oil from overseas, what happens to the supply or demand of oil? Why?
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The market for Sony's Playstation5 game console has changed from 2021 to 2023. With restrictions from the Covid-19 pandemic ending people are finding other entertainment options available such as concerts, movies, and travel. Additionally, the microchip shortage is beginning to lessen, the custom-made AMD Zen 2 chip used in the PS5 has been decreasing in cost. Identify the appropriate market conditions and draw a clear graph to illustrate the market for Sony's Playstation5 game consoles in 2023 as compared to 2021.
1. Explain which non-price determinant(s) of demand and/or supply are changing.
2. Draw a graph on a piece of paper - label all axes, lines, and equilibriums. Include all relevant information.
3. Explain what is happening in the market with regard to equilibrium price and equilibrium quantity.
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