Question

Please help with these questions,

Question 17 0.16 pts During the winter months, many elderly people leave their homes in northern New York and travel south to Florida or Arizona. What would we expect to happen to the equilibrium price and quantity of items most used by the elderly in northern New York? One would increase and one would decrease, but we don't know which would do what O They would both increase. O The price would decrease and the quantity would increase. O The price would increase and the quantity would decrease. O They would both decrease. Question 18 0.16 pts What would happen to the equilibrium price and quantity for the market for cigarettes if the government increased the tax and a scientific study came out confirming that smoking cigarettes increased the rate of heart disease? Equilibrium price will go up and equilibrium quantity will go up. Equilibrium price will go down and equilibrium quantity will be indeterminate. Equilibrium price will be indeterminate and equilibrium quantity will go up. Equilibrium price will go up and equilibrium quantity will be indeterminate. Equilibrium price will be indeterminate and equilibrium quantity will go down. Question 19 0.16 pts When the demand curve shifts to the left and all else is held constant, thee equilibrium pricean and the equilibrium quantity.... O falls; rises falls; falls O falls; remains constant O rises; rises O rises; falls

Answer 1

17. During winter months , many elderly people in New York travel to Florida or Arizona.Because of that demand for most used items by the elderly in northern New York would decrease. Therefore,demand curve for most used items for elderly shift leftward. As a result,equilibrium price and quantity of most used items by elderly in northern New York ,they both would decrease. Hence, option(E) is correct.

18. If the government increased the tax ,then supply curve for cigarettes would shift leftward. And a scientific study came out confirming that smoking cigarettes increased the rate of heart disease , this would decrease the demand ,therefore ,demand curve for cigarettes would shift leftward . As a result , by applying both effects ,equilibrium price will be indeterminate and equilibrium quantity will go down. Hence, option(E) is correct.

19. When the demand curve shifts to the left and all else is held constant,the equilibrium price falls and the equilibrium quantity falls. Hence,option(B) is correct.

20. The difference between a tax and a subsidy is that when a government places a tax on a good, it increases the equilibrium price and decreases the equilibrium quantity, whereas when the government places a subsidy on a good ,it decreases the equilibrium price and increases the equilibrium quantity. Hence, option(B) is correct.

21. The equilibrium price of teddy bear is $5. A study came out that says owning a teddy bear causes to earn lower salary . Therefore, people would demand less teddy bears , demand curve for teddy bears would shift leftward. As a result , equilibrium price of teddy bear falls. So, the price of teddy bears decreases to $4 because of a demand shift. Hence, option(B) is correct.

22. If all else is constant and the price of leather decreases, because of this supply of footballs would increases and therefore supply curve shifts rightward. As a result ,we would expect that the equilibrium quantity of footballs rises and the equilibrium price would fall. Hence , option(D) is correct.