Consider the market for leather. The following events occur simultaneously:
1. The price of beef rises(beef and leather both come for cows)
2. The price of alligator hides increases.
b) Beef and leather are complementary goods in production. If the price of beef goes up, the demand for leather will decrease. The demand curve for leather will shift to the left which will lower the equilibrium price and quantity. The new equilibrium price will be p1 and equilibrium quantity will be q1.
c) Alligator hides are substitutes for leather. If the price of a substitute good, in this case, alligator hides goes up then demand for leather will increase. This will result in higher equilibrium price p1 and quantity q1.
Consider the market for leather. The following events occur simultaneously: 1. The price of beef rises(beef...
two events occur simultaneously in the market for automobiles (1) the wages that are paid by the automobile companies (2) the economy contracts rapidly (which decreases consumers' income. An economist would predict a certainty that: A. equilibrium of quantity falls B. equilibrium of price falls C. equilibrium of quantity rises D. equilibrium of price rises
9. As a result of changes in supply and demand conditions in the beef market, the equilibrium price of beef has increased. What changes in the conditions of the beef market might have caused this? Illustrate your answer with a supply and demand diagram.
3. The market for pizza has the following demand and supply schedules:PriceQuantity DemandedQuantity Supplied$4135 pizzas26 pizzas5104536818176898853110939121a. (0.4 pt) Graph the demand and supply curves. What is the equilibrium price and equilibrium quantity in this market? (Make sure to label the axes.)b. (0.2 pt) If the actual price in this market was below the equilibrium price, what would result? Then, what would drive the market toward the equilibrium?c. (0.2 pt) If the actual price in this market was above the equilibrium...
1. In each of the following cases, draw the supply and demand curves for the market indicated. Your drawings need not be perfectly to scale. After that, please show how the event indicated would affect the supply and/or demand curves. Clearly indicate the new and old equilibrium prices and quantities. In one sentence please explain your reasoning. A) Market: Bicycles Event: Gasoline prices rise to $6.00 per gallon B) Market: Bicycles Event: Your university trustees vote to establish automobile parking...
The following graph shows the market for pianos in 2008. Between 2008 and 2009, the equilibrium quantity of pianos remained constant, but the equilibrium price of pianos increased. From this, you can conclude that between 2008 and 2009, the supply of pianos _______ and the demand for pianos _______ . Adjust the graph to illustrate your answer by showing the positions of the supply and demand curves in 2009. The second group of students attributes the increase in the price of cheeseburgers...
Suppose that leather is sold in a perfectly competitive industry. The industry short-run supply curve (marginal cost curve) is P = MC = 3Q. The demand for leather hides is given by Q = 60 − P. a. Find the equilibrium market price and quantity. b. Suppose that the leather tanning releases bad stuff into waterways. The external marginal cost is $5 per unit. Calculate the socially optimal level of output and price for the tanning industry. c. What are...
Suppose that leather is sold in a perfectly competitive industry. The industry short-run supply curve (marginal cost curve) is P = MC = 3Q. The demand for leather hides is given by Q = 60 − P. a. Find the equilibrium market price and quantity. b. Suppose that the leather tanning releases bad stuff into waterways. The external marginal cost is $5 per unit. Calculate the socially optimal level of output and price for the tanning industry. c. What are...
3.3 Equilibriums - Simultaneous Shifts Question Consider the following hypothetical story on the Canadian beef market. Agriculture and Agri-Food Canada (AAFC) recently reported the average price of a pound of beef dropped from $5 in 2016 to $4 from 2017. However, the AAFC noted the quantity of beef consumed rose from 9 million pounds in 2016 to 12 million pounds in 2017. The AAFC attributes the changes in price and quantity to the following impacts: • Health Canada's update of...
14. A supply and demand puzzle The following graph shows the market for cars in 2007. Between 2007 and 2008, the equilibrium price of quantity of cars increased. From this, you can conclude that between 2007 and 2008, the supply of cars _______ and the demand for cars _______ .Adjust the graph to illustrate your answer by showing the positions of the supply and demand curves in 2008.
(12-point question): Suppose we observe the following two simultaneous events in the market for eReaders (like Kindles). First, there is a decrease in the demand for eReaders due to the popularity of computer tablets on which books can be read. Second, there is a reduction in the supply of eReaders due to a tax placed on an important component of eReaders. Follow the instructions below to explain the effects of these two events on the equilibrium price and quantity of...