Question

1. Graph and explain the impact on the market demand for motor cycles if the price of motor cycle insurance increases. Be sure to show the change in equilibrium price and equilibrium quantity.

2. Graph and explain the impact on the market demand for refrigerators if incomes rise. Be sure to show the change in equilibrium price and equilibrium quantity.

3. Graph and explain the impact on the market supply of apple I-pads if a new technology is developed that allows I-pad production to be more efficient. Be sure to show the change in equilibrium price and equilibrium quantity.

Answer 1

1.A rise in insurance premiums would make buying bikes expensive,and the demand for bikes will fall.

g, g,

The equilibrium price and quantity falls.

2.A rise in Consumer's income raises demand for goods and services.The demand curve for refrigerators shift to the right raising equilibrium price and quantity.

3.An efficient technology lowers cost of production, increasing supply The price falls and quantity rises.