For the following statements identify how you would model the change. What is the exogenous shock?...
For the following statements identify how you would model the change. What is the exogenous shock? How do you model it? Then identify the endogenous changes to price and quantity as the market adjusts to the shock.
Due to exceptional weather there is a bountiful cocoa harvest. In the cocoa market, the exogenous shock is a(n) [decrease in demand, increase in demand, decrease in supply, OR increase in supply?] . As a result, one would expect the equilibrium price to [decrease OR increase?] and the equilibrium quantity to [decrease OR increase?] .
Homework Answers
Due to exceptional weather there is a bountiful cocoa harvest. In the cocoa market, the exogenous shock is an increase in supply . As a result, one would expect the equilibrium price to decrease and the equilibrium quantity to increase.
There is a large number quantity of cocoa harvest due to exceptional weather which leads to increase in supply of cocoa. As a result the supply curve will shift to the right which leads to decrease in equilibrium price and increase in equilibrium quantity.
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For the following statements identify how you would
model the change. What is the exogenous shock?...
Consider the table above. If the price in the market is initially set at $2, what...
Consider the table above. If the price in the market is initially set at $2, what is the result in the market, and what will eventually have to happen to move the market to equilibrium? a. Shortage, price increase b. Shortage, price decrease c. Surplus, price increase d. Surplus, price decrease Suppose a market is initially in equilibrium. Then a change occurs and the equilibrium price decreases while the equilibrium quantity increases. What change occurred in the market to cause...
Need help, please show work. For B, the answer choices are (increase, decrease, or stay the...
Need help, please show work. For B, the answer choices are
(increase, decrease, or stay the same). For C, the potential
answers are in the answer bank.
The Science of Macroeconomics- End of Chapter Problem Assume consumers feel that frozen yogurt is a substitute for ice cream and that the price of frozen yogurt falls. Use this information to answer the three following questions. a. The accompanying supply and demand diagram depicts the market for ice cream. Shift the demand...
(please only answer this if you know how to get the correct answer, thank you). question:...
(please only answer this if you know how to get the correct answer, thank you). question: Ice cream is a close substitute for frozen yogurt. Use the model of supply and demand to explain how a fall in the price of frozen yogurt would affect the price of ice cream and the quantity of ice cream sold. Please identify the exogenous and endogenous variables and provide a graph of supply and demand.
Suppose that demand decreases AND supply increases. What would you expect to occur in the market...
Suppose that demand decreases AND supply increases. What would you expect to occur in the market for the good? Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. O Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
Which of the following would be expected to cause a decrease in the quantity supplied of...
Which of the following would be expected to cause a decrease in the quantity supplied of a certain good? 6. a. b. c. d. A decrease in the cost of materials used in producing that good An increase in the cost of materials used in producing that good A decrease in the price of the good An increase in the price of the good Suppose that at a price of $70 the quantity supplied in a market is 10 units,...
Question 24 1 pts Suppose that demand decreases AND supply decreases. What would you expect to...
Question 24 1 pts Suppose that demand decreases AND supply decreases. What would you expect to occur in the market for the good? O Both equilibrium price and equilibrium quantity would increase. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous
1) Must be stapled. I will not accept any loose sheets 1) Identify non-price factors that...
1) Must be stapled. I will not accept any loose sheets 1) Identify non-price factors that would cause the demand curve to move right or left. 2) Next, draw (individual graphs) indicating how each of the following non-price factors would cause the change in demand curve (shift right, shift left), price (P) and quantity (Q). You need to draw a market equilibrium curve (i.e. both the demand and supply) for each of the following before you can shift the demand...
1) All of the following except one would increase the amount of a particular model of...
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2. Suppose that we can model the tennis ball market using our standard supply/demand analysis (and...
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How would you need to shift the supply and demand curves in a market to result...
How would you need to shift the supply and demand curves in a market to result in a situation where equilibrium quantity increases while the equilibrium price change is indeterminate? Supply must increase while demand decreases. Either supply or demand must increase. Both supply and demand must increase.
Need help, please show work. For B, the answer choices are
(increase, decrease, or stay the same). For C, the potential
answers are in the answer bank.
The Science of Macroeconomics- End of Chapter Problem Assume consumers feel that frozen yogurt is a substitute for ice cream and that the price of frozen yogurt falls. Use this information to answer the three following questions. a. The accompanying supply and demand diagram depicts the market for ice cream. Shift the demand...
Suppose that demand decreases AND supply increases. What would you expect to occur in the market for the good? Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. O Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
Which of the following would be expected to cause a decrease in the quantity supplied of a certain good? 6. a. b. c. d. A decrease in the cost of materials used in producing that good An increase in the cost of materials used in producing that good A decrease in the price of the good An increase in the price of the good Suppose that at a price of $70 the quantity supplied in a market is 10 units,...
Question 24 1 pts Suppose that demand decreases AND supply decreases. What would you expect to occur in the market for the good? O Both equilibrium price and equilibrium quantity would increase. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous
1) Must be stapled. I will not accept any loose sheets 1) Identify non-price factors that would cause the demand curve to move right or left. 2) Next, draw (individual graphs) indicating how each of the following non-price factors would cause the change in demand curve (shift right, shift left), price (P) and quantity (Q). You need to draw a market equilibrium curve (i.e. both the demand and supply) for each of the following before you can shift the demand...
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