3. Forecast how equilibrium price and quantity will change in each scenario below. a. Assume that...
3. Forecast how equilibrium price and quantity will change in each scenario below.
a. Assume that the market for cellphones is perfectly competitive. The development of a new technology allows the price of computer chips in cellphones to decrease. Let us also assume, a new health study has conclusively proven that continued use of cellphones can raise the risk of cancer by 25%. What will happen to equilibrium price and equilibrium quantity of cellphones in this market? Use a graph to support your answer.
b. You are an economist tracking price and quantity changes in the cattle market. Mad cow disease suddenly affects the cattle population. What will happen to equilibrium price and equilibrium quantity of cattle in this market? Use a graph to support your answer.
Homework Answers
Add Answer to:
3. Forecast how equilibrium price and quantity will change in
each scenario below.
a. Assume that...
3. Graph the market for blueberries, with equilibrium price equal to $4 and equilibrium quantity equal...
3. Graph the market for blueberries, with equilibrium price equal to $4 and equilibrium quantity equal to 50. a. Graph the effect of a new report that indicates blueberries can prevent cancer. What is the effect on equilibrium price and quantity? b. Suppose early rains have made the blueberry crop less success; graph the effect and describe the change in equilibrium price and quantity.
2. Discuss the impact on the equilibrium price and quantity and illustrate it with a graph....
2. Discuss the impact on the equilibrium price and quantity and illustrate it with a graph. a) Suppose a new discovery in computer manufacturing has just made computer production cheaper. Also, the popularity and usefulness of computers continues to grow. Use Supply and Demand analysis to predict how these shocks will affect equilibrium price and quantity of computers. Illustrate your answer with a graph. The currency used by the Confederate States of America during its brief existence from 1861 to...
1.Given the following solutions, define if price equilibrium and quantity equilibrium increase or decrease as well...
1.Given the following solutions, define if price equilibrium and quantity equilibrium increase or decrease as well as graph each of them in relation to the market for coke: a) bad weather wreaks havoc with corn crop (main ingredient for coke) b) the price of Pepsi (a substitute) rises dramatically: c) increase in the umber of coke suppliers in the market 2. For each question indicate whether there is a shift in supply or demand, what happens to price and what...
Use the graphs provided to predict what will happen to the equilibrium price and quantity of...
Use the graphs provided to predict what will happen to the equilibrium price and quantity of oranges if the following events take place Instruction: Depict how this event will affect the market of oranges by dragging the appropriate curve in the graph a. A study finds that a daily glass of orange juice reduces the risk of heart disease. Market for oranges P* Q* Quantity (oranges/week) reset Equilibrium price will increase and equilibrium quantity will decrease. Equilibrium price will decrease...
Equilibrium price and quantity are $20 and 6 pizzas, respectively. Assume that the price of cheese...
Equilibrium price and quantity are $20 and 6 pizzas, respectively. Assume that the price of cheese increases (cheese is an important ingredient in pizza). Explain the adjustment process in the pizza market after the shock to the new equilibrium.
What will be the long-run price in this market? Question 2: Assume the current price of...
What will be the long-run price in this market? Question 2: Assume the current price of corn chips is S2 per packet. The demand elasticity is 1 (ignoring the negative sign) and current consumption (i.e. quantity demanded) is 40 million packets per week. Suppose that the manufacturer raises the price of corn chips to $4 per packet. a) Derive the demand equation. b) What will happen to weekly consumption as price increases to $4? c) Suppose the supply equation is...
1- If the price of a good is below the equilibrium price, this will: a- Shift...
1- If the price of a good is below the equilibrium price, this will: a- Shift the demand curve down. b- Create a surplus. c- Create a shortage. d- Have no effect. How would an outward shift in demand affect the market equilibrium? Group of answer choices a- Equilibrium price and quantity would decrease. b- Equilibrium price and quantity would increase c- Equilibrium price would decrease; equilibrium quantity would increase. d- Equilibrium price would increase; equilibrium quantity would decrease. e-...
Directions: For each question, show what happens to Equilibrium price (P) and quantity (Q) using supply-demand...
Directions: For each question, show what happens to Equilibrium price (P) and quantity (Q) using supply-demand analysis. Clearly state your conclusion (e.g., "equilibrium price increases, while equilibrium quantity decreases" using the short-hand " ^P and vQ"). Be sure to complete and correctly label your graphs. Question 5: Part A: An important ingredient/input in the production of gasoline is petroleum. Suppose there is a technological innovation - let's call it hydraulic fracturing ("fracking") - in the production of petroleum. Ceteris paribus,...
(3)Use appropriate graphical illustrations to show how each of the following affects the equilibrium price and...
(3)Use appropriate graphical illustrations to show how each of the following affects the equilibrium price and the equilibrium quantity in the market for commodity Z. Explain each diagram. (a)A favorable shift in consumer preferences for this product. (b) A significant increase in the minimum real wage paid for the use of labor resources. (c)A fall in the price of commodity Y considered to be a substitute for commodity Z. (d)A severe weather condition that negatively impacts the production and the...
Part 2. Show how the factors listed below would impact equilibrium price and quantity in the...
Part 2. Show how the factors listed below would impact equilibrium price and quantity in the market for apples. Start each part with a sketch of a market equilibrium diagram similar to Figure 3.7 on page 66 of the text. Label the initial equilibrium as P1 and Q1 and then show the new equilibrium as P2 and Q2. Provide arrows to show the direction of change for equilibrium price and quantity. Draw the Following: e) A frost kills one third...
3. Graph the market for blueberries, with equilibrium price equal to $4 and equilibrium quantity equal to 50. a. Graph the effect of a new report that indicates blueberries can prevent cancer. What is the effect on equilibrium price and quantity? b. Suppose early rains have made the blueberry crop less success; graph the effect and describe the change in equilibrium price and quantity.
2. Discuss the impact on the equilibrium price and quantity and illustrate it with a graph. a) Suppose a new discovery in computer manufacturing has just made computer production cheaper. Also, the popularity and usefulness of computers continues to grow. Use Supply and Demand analysis to predict how these shocks will affect equilibrium price and quantity of computers. Illustrate your answer with a graph. The currency used by the Confederate States of America during its brief existence from 1861 to...
Use the graphs provided to predict what will happen to the equilibrium price and quantity of oranges if the following events take place Instruction: Depict how this event will affect the market of oranges by dragging the appropriate curve in the graph a. A study finds that a daily glass of orange juice reduces the risk of heart disease. Market for oranges P* Q* Quantity (oranges/week) reset Equilibrium price will increase and equilibrium quantity will decrease. Equilibrium price will decrease...
What will be the long-run price in this market? Question 2: Assume the current price of corn chips is S2 per packet. The demand elasticity is 1 (ignoring the negative sign) and current consumption (i.e. quantity demanded) is 40 million packets per week. Suppose that the manufacturer raises the price of corn chips to $4 per packet. a) Derive the demand equation. b) What will happen to weekly consumption as price increases to $4? c) Suppose the supply equation is...
(3)Use appropriate graphical illustrations to show how each of the following affects the equilibrium price and the equilibrium quantity in the market for commodity Z. Explain each diagram. (a)A favorable shift in consumer preferences for this product. (b) A significant increase in the minimum real wage paid for the use of labor resources. (c)A fall in the price of commodity Y considered to be a substitute for commodity Z. (d)A severe weather condition that negatively impacts the production and the...
Part 2. Show how the factors listed below would impact equilibrium price and quantity in the market for apples. Start each part with a sketch of a market equilibrium diagram similar to Figure 3.7 on page 66 of the text. Label the initial equilibrium as P1 and Q1 and then show the new equilibrium as P2 and Q2. Provide arrows to show the direction of change for equilibrium price and quantity. Draw the Following: e) A frost kills one third...
Most questions answered within 3 hours.
-
An aqueous solution of barium hydroxide is
standardized by titration with a 0.196 M solution
of...
asked 25 minutes ago -
accorsing to the data from thw college board, the mean wuantitive
Sat score for s demale...
asked 1 hour ago -
1- What are 5 general characteristics of Botticelli’s
paintings?
2- Describe 5 important traits of Flemish...
asked 3 hours ago -
A golfer claims that his average golf score at the course he
plays regularly is less...
asked 3 hours ago -
On May 1, First Bank perfected a security interest in Debtor’s
inventory. On June 1, Bob...
asked 4 hours ago -
A new kind of typhoid shot is being developed by a medical
research team. The old...
asked 5 hours ago -
Write a chemical equation for these reactions. (Use
the lowest possible whole number coefficients.) Include
states-of-matter...
asked 7 hours ago -
For each of the Z-scores below, determine two probabilities
(show four three decimal places): (1) the...
asked 8 hours ago -
Oxidative phosphorylation is achieved through chemiosmotic
coupling, which turns chemical energy into osmotic potential energy
that...
asked 10 hours ago -
Hollywood Shoes would like to maintain their cash account at a
minimum level of $64,000, but...
asked 10 hours ago -
Proteins CtrA-P, DnaA, and GcrA behave similarly to what
molecule in the Eukaryotic Cell Cycle?
asked 11 hours ago -
TRUE OR FALSE
In case of a competitive tender procedure, in the request for
quotation, the...
asked 11 hours ago