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8) what is the equilibrium price? 9) does the supply curve go up or down? 10)...

8) what is the equilibrium price? 9) does the supply curve go up or down? 10) you are dependent on a drug to keep your heart beating and the drug company decides to double the price. are you going to cut your use of the drug in half? explain 11) the current price of gasoline in Salem is $2.37 per gallon. You stop on the mass turnpike and discover that gas is $2.73 per gallon. why would it be higher there? 12) joe is going to quit teaching to raise hogs on his property. he plans to raise 10,000 hogs when he is fully operational.can you think any reasons that his neighbors on the adjoining land might be unhappy about this?

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Answer #1

8) The price at which the quantity of goods demanded by the consumer is equal to quantity goods supplied by the producer is called as equillibrium price. At equllibrium price both Producer and consumer are happy to sell and buy the product.

9) Supply curve go down or up depending on Various factors in the market. If the price of product goes up the supplier will be happy to increase the production as he get more revenue. Thus supply curve always goes up.

10) No I will not cut the use of drug by half as I am dependent on that drug as it is keeping my heart to beat. So icreasing the price by double also will not make me to reduce the usage of drug.

11) The price may have went up due to one reason is that the quantity demand for the gasoline is high and the supply is low which lead to shortage of gasoline. Thus when there is a shortage in supply of product the producer will increase the market price to reduce the demand of the product. Hence as gasoline is a natural resource due to decrease in supply by the supplier made the price to go up.

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