ZuoTi.Pro
Question

Effect on Demand Curve Scenario The incomes of consumers of inferior good Y decrease. What is the effect of the change in incomes on the market for good Y? Farmers are deciding what crop to plant and learn that the price of corn has fallen relative to the price of cotton. What is the effect of the changing prices of crops on the market for corn? Effect on Supply Curve

(leftward shift, no change, rightward shift)

business   economics   
1 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

a) As the income of the consumer has decreased it will not have any effect on the supply curve of the good but it will shift the demand curve to the right as the consumer will demand more inferior good at a lower income.

b) as the price of corn has fallen the farmers will produce less corn, it will shift the supply curve to the left and will have no effect on the demand of corn (will not shift only cause a movement along the demand curve).

1 0
Add a comment
Know the answer?
Add Answer to:
(leftward shift, no change, rightward shift) Effect on Demand Curve Scenario The incomes of consumers of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Explain and illustrate graphically the effect of the following situation: Farmers are deciding what crop to...

    Explain and illustrate graphically the effect of the following situation: Farmers are deciding what crop to plant, and learn that the price of corn has fallen relative to the price of cotton.

  • 3. Answer the following questions involving the determinants of both demand and supply as explained in...

    3. Answer the following questions involving the determinants of both demand and supply as explained in chapter three: L Assume the demand for product X increases. This might be caused by A a change in consumer tastes that is unfavorable to X. B. a decline in the price of Z, provided that X and Z are substitute goods C. a decline in income, provided that X is an inferior good. D. an increase in the price of Y, provided that...

  • 1. A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of

    1. A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift ofUse letters in alphabetical order to select optionsAboth the supply and demand curves.Bthe demand curve, as consumers try to economize because of the shortage.Cthe supply curve.Dthe supply curve and a rightward shift of the demand curve, resulting in a higher equilibrium price.2. _________________ refers to the total number of units that are purchased at that...

  • 1. If the demand curve suddenly shifted leftward, then the supply curve will also “automatically” shift...

    1. If the demand curve suddenly shifted leftward, then the supply curve will also “automatically” shift to the left. This always happens.T/F 2. U.S. government often needs taxpayer money to pay for price floors. This money is used to pay off the producers of goods or services. Price floors usually create shortages. T/F 3. If a local politician emotionally believed in their heart and mind that a minimum wage of $35 per hour was a fair wage and that it...

  • 2) If the price of automobiles were to increase substantially, the demand curve for gasoline would most likely A) shift...

    2) If the price of automobiles were to increase substantially, the demand curve for gasoline would most likely A) shift leftward. B) shift rightward. C) become flatter. D) become steeper. 3) If the price of automobiles were to decrease substantially, the demand curve for automobiles would most likely A) shift rightward. B) shift leftward. C) remain unchanged. D) become steeper. 4) Suppose a market were currently at equilibrium. A rightward shift of the demand curve would cause A) an increase...

  • True or False: The reasons for the downward slope of an aggregate demand curve include the real b...

    True or False: The reasons for the downward slope of an aggregate demand curve include the real balances effect, the interest-rate effect, and the net exports effect. True O False Although the AD and market demand curves are both downward sloping, the two concepts are different because the AD curve deals with prices and a ー, while the market demand curve deals with prices and a For each scenario in the following table, indicate whether the aggregate demand curve will...

  • For each graph    show the Shift in Demand or Supply that will happen ON EACH GRAPH,...

    For each graph    show the Shift in Demand or Supply that will happen ON EACH GRAPH, given the event described.   Below each Graph predict (show) what happens to Equilibrium Price and Quantity with Arrows: Up, Down, or “?” (can’t tell). a. Prices for Ketchup, a “complement” used with eating frozen French Fries, goes way DOWN!: P: _____    Q: _____    B. Flooding destroys 80% of the Potato Crops, this year!    P: _____    Q: _____ c. DOUBLE SHIFT -- Incomes...

  • Market SHOCKS Graphs. For each graph 17–25,  show the Shift in Demand or Supply that will happen...

    Market SHOCKS Graphs. For each graph 17–25,  show the Shift in Demand or Supply that will happen ON EACH GRAPH given event described. Below each Graph predict what happens to Equilibrium Price and Quantity (up or down). Put: Up, Down, or “?” (can’t tell). DOUBLE SHIFT -- Incomes FALL, and frozen French Fries are considered an INFERIOR good to consumers; while at the same time, Potato crops are abundant this year, due to excellent weather! P: _____    Q: _____ Price S,...

  • What might cause the Aggregate Demand curve to shift to the right? What does this mean...

    What might cause the Aggregate Demand curve to shift to the right? What does this mean for the state of the economy? What might cause the Aggregate Demand curve to shift to the left? What does this mean for the state of the economy? Sometimes the Aggregate Supply curve is drawn as an upward sloping straight line--other times it is drawn initially flat, then upsloping, then very steep. How does the shape of the AS curve matter for the effect...

  • 50. Ceteris paribus, the total demand for money curve will increase (shift rightward): A. if interest...

    50. Ceteris paribus, the total demand for money curve will increase (shift rightward): A. if interest rates increase. B. if nominal GDP decreases. C. if the price level decreases. D. if nominal GDP increases. 51. Ceteris paribus, the total demand for money curve will decrease (shift leftward): A. if interest rates increase. B. if nominal GDP decreases. C. if the price level increases. D. if nominal GDP increases. 52. Which of the following is correct? A. The asset (speculative) demand...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT