1. Use the Supply/Demand model to predict how each of the following shocks would affect price, quantity supplied, and quantity demanded in a competitive market for a normal good. For each shock, be sure to clearly state your predicted direction of change (up, down, or no change) for each of the three variables and to depict your predictions with a supply/demand diagram. a. the average income of potential buyers decreases b. the number of potential buyers increases c. total factor productivity increases d. wage rates increase

1. Use the Supply/Demand model to predict how each of the following shocks would affect price, quantity supplied, and quantity demanded in a competitive market for a normal good. For each shock, be sure to clearly state your predicted direction of change (up, down, or no change) for each of the three variables and to depict your predictions with a supply/demand diagram. a. the average income of potential buyers decreases b. the number of potential buyers increases c. total factor productivity increases d. wage rates increase

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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12. What statement is always true When income increase, people will buy more quantity of good. Quantity demand of good A will drop when price of good B is cheaper Demand for a good can be changed when individual taste is change. Expectation cannot affect demand อื่นๆ: 13. What can affect supply shift to the right? Less number of sellers New technology that improve efficiency Increased input prices Expectation of new pandemic outbreak ล้างสิ่งที่เลือก
Refer to Exhibit 5.7, which shows four demand curves. If D(2) is the demand curve after a price increase, which demand curve best illustrates how consumers will respond to the change in price over one year? a b C d Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. e curve D(1) curve D(2) curve D(4) curve D(3) Exhibit 5.7 curve D(1) or curve D(4) Price D(4) D(1) D(3 D(2) >> Quantity
Discuss how the demand and supply for a particular product/s have changed in the last 2-3 years. Discuss the product, and how one or a few of its determinants of demand and supply has changed in the last few years. You can use a diagram to illustrate your response. Also, discuss how the price of that product and the equilibrium quantity has changed due to changes in the demand and supply for that product.
Assume that supply for cars increases for any given price and, at the same time, the demand for cars reduces for any given price. You can predict: a. That the price of cars will unambiguously increase, while the car sales may increase or decrease. b. That car sales will unambiguously decrease, while the car price may increase or decrease. c. That the price of cars will unambiguously decrease, while the car sales may increase or decrease. d. That car sales will unambiguously increase, while the car price may increase or decrease.
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2. The graph below shows the demand and supply of baseball caps with inflexible prices. Suppose that 100 baseball caps is the optimal and most profitable level of production for the firm. Price (S) 20 10 150 Baseball A. Determine the equilibrium price and quantity at the medium level of demand (DM) B. Determine the equilibrium price and quantity if there is a demand shock that unexpectedly lowers demand (DL). C. Determine the equilibrium price and quantity if there is a demand shock that unexpectedly increases demand (DH). D. What can you conclude will happen to prices and output when this model is shocked by changes in demand?
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When a good becomes more trendy, is there a: change in demand/change in quantity demanded/change in supply/change in quantity supplied? Answer and explain in 2-3 sentences, then upload your answer to this folder.
The demand curve for a normal good shifts leftward if income ________ or the expected futureprice ________.A) decreases; falls B) increases; rises C) increases; falls D) decreases; rises