Answer c)
As the price of input for production of hot chocolate (output) falls, so supply of product increases, thus supply curve shifts rightwards in downwards direction
Thus demand bring unchanged, equilibrium quantity rises & equilibrium prices will fall.
Answer d)
Since whipped cream is placed in the top of hot chocolate , thus it's a complementary good, since it is jointly Consumed with the hot chocolate, so as the price of whipped cream falls, thus denand for hot chocolate rises, so demand curve shifts rightwards, this supply being unchanged,
Both quantity & prices at equilibrium rise.
Graphs
Suppose we are analyzing the market for hot chocolate. Graphically illustrate the impact each of the...
Suppose we are analyzing the market for hot chocolate. Graphically illustrate the impact each of the following would have on demand or supply. Also show how equilibrium price and equilibrium quantity would change. a. Winter starts and the weather turns sharply colder. b. The price of tea, a substitute for hot chocolate, falls. c. The price of cocoa beans decreases. d. The price of whipped cream falls. e. A better method of harvesting cocoa beans is introduced. f. The Surgeon...
Suppose we are analyzing the market for hot chocolate. Graphically illustrate the impact each of the following would have on demand or supply. Also show how equilibrium price and equilibrium quantity would change e. A better method of harvesting cocoa beans is introduced f. The Surgeon General of the U.S. announces that hot chocolate cures acne.
Suppose we are analyzing the market for hot chocolate. Graphically illustrate the impact each of the following would have on demand or supply. Also show how equilibrium price and equilibrium quantity would change. a. Winter starts, and the weather turns sharply colder. b. The price of tea, a substitute for hot chocolate, falls
Question 2- (Chapter 4)- Supply and Demand: Suppose we are analyzing the market for hot chocolate. Graphically illustrate the impact each of the following would have on demand or supply. Also show how equilibrium price and equilibrium quantity would change. a. Winter starts, and the weather turns sharply colder. b. The price of tea, a substitute for hot chocolate, falls c. The price of cocoa beans decreases. d. The price of whipped cream falls e. A better method of harvesting...
Suppose we are analyzing the market for hot chocolate. Graphically illustrate the impact each of the following would have on demand or supply. Also show how equilibrium price and equilibrium quantity would change i. Producers expect the price of hot chocolate to increase next month. J. Currently, the price of hot chocolate is $0.50 per cup above equilibrium.
emand or supply. Also late. Graphically illustrate the impact each Suppose we are analyzing the market for hot ch ly. Also show how equilibrium price and of the following would have on demand or quantity have changed. is introduced. (5 points) a A better method of harvesting cocoa to hot chocolate, decreases. (5 points) b. The price of whipped cream, a comple s of milk, causing the price of milk to rise. (5 c. Protesting farmers dump millions of gal...
Suppose we are analyzing the market for hot chocolate. Graphically illustrate the impact each of the following would have on demand or supply. Also show how equilibrium price and equilibrium quantity would change g. Protesting farmers dump millions of gallons of milk, causing the price of milk to rise h. normal good.
QUESTION 11 Suppose we are analyzing the market for hot chocolate. Hot chocolate is the final product. In other words, think of the hot chocolate as a complete product you may purchase at someplace like Starbuck's, not like individual components you would buy separately and assemble at home. Indicate the impact the following event would have on equilibrium price (increase or decrease) and equilibrium quantity (increase or decrease). The price of whipped cream falls. Whipped cream is a complimentary good....
answer this ICE 3 Microeconomics January 21, 2020 4. Suppose we are analyzing the market for hot chocolate. From each of the following, identify the impact it would have on demand, supply, equilibrium price, and equilibrium quantity. a. Winter starts and the weather turns sharply colder. (D S P Q b. The price of tea, a substitute for hot chocolate, falls. (D_S_P_10 c. The price of cocoa beans decreases. (D ,S ,P ,Q d. The price of whipped cream falls....
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