Question

1. Show using supply and demand analysis the effect on the yacht market when incomes across the country fall (i.e. the country is in a recession). 2. Show using supply and demand analysis the effect on the new car market when the assembly line was invented. 3. Show using supply and demand analysis the effect on off brand toilet paper during an expansion. 4. Show using supply and demand analysis the effect on the market for full-sized SUVS when people want to be more environmentally friendly S. Show using supply and demand analysis the effect on the new car market when the price of steel (an input cost for cars) increases 6. Show using supply and demand analysis the market for boats if there is an increase on the number of factories that produce boats 7. Show using supply and demand analysis the effect on the computer market if students plan on attending universities where all work is digitally provided 8. Show using supply and demand analysis the effect on designer clothing during an economic recession. 9 Show using supply and demand analysis the effect on the computer market if the price of silicon used in microchips rises 10. Show using supply and demand analysis the effect on Ramen Noodles during a recession. 11. Show using supply and demand analysis the effect on the market for iPhones if the Samsung Galaxy doubles in price. 12. Show using supply and demand analysis the effect on the computer market if Microsoft is able to negotiate a lower wage with its workers 13. Show using supply and demand analysis the effect on the computer market if a study is released showing that an overdependence on computers will lower your IQ by 50 points.

Supply and Demand Analysis Graphs

Answer 1

As per rules and time constraint, only first question is allowed. However, since questions were small, I answered six. Kindly ask other questions separately. Thank you.

Ans) Demand side shifters÷ change in income, change in consumer preference, number of buyers, change in price of related goods etc.

Supply side shifters÷ change in number of sellers, change in technology, change in price of related goods, change in price of input etc.

1) When income falls, demand will decline. As a result, demand curve will shift to the left. Both price and quantity will decrease.

PA Demand गवती --- 9-81

2) Due to invetoion of assembly line, production of car became easy. So, supply will increase. Supply curve will shift to the right. Price will decrease and quantity will increase.

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3) During expansion, there is increase in employment, income and production activity. When income rises, people prefer buying costly or known or branded products. So, during expansion, demand for off brand toilet paper will decrease. Demand curve will shift to the left.

PA Demand गवती --- 9-81

4) When people decide to be more environment friendly, they will prefer public transport to private or will buy small cars instead of big ones. So, demand for SUV'S will decline and demand curve will shift to the left. Both price and quantity will decrease.

PA Demand गवती --- 9-81

5) When price of an input increases, production becomes costly and the supply decreases. Supply curve will shift to the left. Price will increase and quantity will decrease.

skQ Quantity

6) With increase in number of boat sellers, supply will increase. Supply curve will shift to the right. Price will decrease and quantity will increase.

Price too Quantity