16. How shifts in demand and supply affect equilibriumConsider the market for pens. Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch frompencils to pens in school. Moreover, the price of plastic, an important input in pen production, has dropped considerably.On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens.Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps backto its original position, just drag it a little farther.Scenario 110SupplyDemandSupplyDemand210QUANTITY (Millions of pens)PRICE (Dollars per pen) Scenario 210SupplyDemand7SupplyDemand212345810QUANTITY (Millions of pens)Compare both the Scenario 1 and Scenario 2 graphs. Notice that after completing both graphs, you can now see a difference between them thatwasn't apparent before the shifts because each graph indicates different magnitudes for the supply and demand shifts in the market for pens.Use the results of your answers on both the Scenario 1 and Scenario 2 graphs to complete the following table. Begin by indicating the overall changein the equilibrium price and quantity after the shift in demand or supply for each shift-magnitude scenario. Then, in the final column, indicate theresulting change in the equilibrium price and quantity when supply and demand shift in the direction you previously indicated on both graphs. If youcannot determine the answer without knowing the magnitude of the shifts, choose Cannot determine.Change in Equilibrium ObjectsEquilibrium ObjectScenario 1Scenario 2When Shift Magnitudes Are UnknownPriceQuantityTrue or False: When both the demand and supply curves shift, the curve that shifts by the larger magnitude determines the effect on theundetermined equilibrium object.PRICE (Dollars per pen)

16. How shifts in demand and supply affect equilibrium Consider the market for pens. Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch from pencils to pens in school. Moreover, the price of plastic, an important input in pen production, has dropped considerably. On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. (? Scenario 1 10 Supply Demand Supply Demand 1 0 1 2 3 5 10 4 QUANTITY (Millions of pens) co co PRICE (Dollars per pen)

16. How shifts in demand and supply affect equilibrium Consider the market for pens. Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch from pencils to pens in school. Moreover, the price of plastic, an important input in pen production, has dropped considerably. On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. (? Scenario 1 10 Supply Demand Supply Demand 1 0 1 2 3 5 10 4 QUANTITY (Millions of pens) co co PRICE (Dollars per pen)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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How shifts in demand and supply affect equilibrium Consider the market for pens. Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch from pencils to pens in school. Moreover, the price of plastic, an important input in pen production, has dropped considerably. On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. Scenario 1DemandSupply012345678910109876543210PRICE (Dollars per pen)QUANTITY (Millions of pens)Demand Supply Next, complete the following graph, labeled Scenario 2, by shifting the supply and demand curves in the same way that you did on the Scenario 1 graph. Scenario 2DemandSupply012345678910109876543210PRICE…
Assume that the equilibrium price is at $3 and equilibrium quantity is at 40 units of a product. Then, imagine that suddenly any of determinants of demand, other than the price of the product, caused demand to increase while, at the same time, one of determinants of supply, other than the price of the product, caused supply to decrease. TASK: First, draw the demand and supply graph to show the original equilibrium price at $3 and equilibrium quantity at 40 units. Second pick ONE specific DETERMINANT of DEMAND and ONE specific DETERMINANT of SUPPLY Third, show in the graph what it looked like if demand increased and supply decreased (select where you think that the new price and quantity would change to), what the new equilibrium price and equilibrium quantity would be, after both changes in demand and supply occurred. Fourth, in a couple of words, write down what would be YOUR new equilibrium price and equilibrium quantity. [That is, tell us that the original equilibrium price…
The following graph presents the market for sweaters in 2018. Between 2018 and 2019, the equilibrium price of sweaters remained constant, but the equilibrium quantity of sweaters increased. Given this information, you can conclude that between 2018 and 2019, the supply of sweaters and the demand for sweaters decreased PRICE (Dollars per sweater) increased was unchanged he graph to illustrate your answer by showing the positions of the supply and demand curves in 2019. rag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back on, just drag it a little farther. QUANTITY (Sweaters) Supply Demand Demand Supply ?
There has been explosive growth in the demand for the green leafy vegetable kale in recent years as consumers learned of its health benefits. The demand curve has shifted significantly rightward. However, the price of a bunch of kale in the grocery store has been fairly stable. Draw a supply and demand diagram showing the market for kale, and show how the price of kale could remain stable in the face of such an enormous growth in demand. 1.) please plot the new supply and demand curves on a diagram and label the lines properly. 2.) please also indicate the new equilibrium point at the same price as the original equilibrium and label it.
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Suppose the Mayo publishes a study finding that the caffeine in coffee increases the probability of getting Alzheimer’s. How do you imagine this will affect the market for coffee? Which determinant of demand or supply is being affected? Show graphically with before and after curves on the same axes. How will this change affect the equilibrium price and quantity of coffee? Explain your reasoning.
Construct a graph (diagram) for this question without an explanation. What will happen to the equilibrium price and quantity of coffee if it is discovered that coffee helps to prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee? Assume the responsiveness of supply is greater than the responsiveness of demand
Scenario:1 The fictional country of Econland is experiencing a surge in demand for smartphones due to technological advancements and increased consumer preferences for mobile devices. At the same time, several smartphone manufacturers have introduced cost-effective production methods, leading to an increase in the supply of smartphones in the market. As the professor, you are asked to illustrate the situation by drawing the Demand and Supply curve and determining the Equilibrium price and quantity. Question: Given the scenario in Econland, draw the Demand and Supply curves on the same graph and indicate the Equilibrium price and quantity of smartphones. Explain the market conditions that lead to this equilibrium and discuss the potential implications for consumers, producers, and the overall market dynamics.
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13. How shifts in demand and supply affect equilibrium Consider the market for pens. Suppose that the number of students who are allergic to the rubber used in pencil erasers increases, leading more students to switch from pencils to pens in school. Further, the price of plastic, a major input in the pen production process, has dropped sharply. On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per pen) 10 PRICE (Dollars per pen) 9 8 1 0 10 9 8 1 0 0 1 0 2 1 Next, complete the following graph, labeled Scenario 2, by shifting the supply and demand curves in the same way that you did on the Scenario 1 graph. 2 Scenario 1 Supply 3 5 6 7 QUANTITY (Millions of pens) 3 Demand Scenario 2 8 Supply 4 5…
1. Which of the following will result in an uncertainty regarding any change that might occur in the equilibrium quantity but a definite increase in the equilibrium price? a) An increase in demand and a decrease in supply b) A decrease in demand and a decrease in supply c) A decrease in demand and an increase in supply d) An increase in demand and an increase in supply 2. In a production possibility frontier (PPF) graph it is observed that points 1,2,3, and 4 lie on the PPF, Point 5 is outside the PPF, and point 6 is inside the PPF. Which of the following statements is correct? a) Point 6 can be produced only if there is an increase in resource availability and/or an improvement in technology. b) Points 1-4 and 6 can be produced with the currently available resources and technology, but resources are used efficiently only at points 1-4. c) Point 5 can be produced with the currently available resources and technology, but the resource use is inefficient. d) Point 6 can be produced with…
This not a grade Question to go with picture: Label the new Equilibrium E1 What is the new equilibrium price? What is the new equilibrium quantity? Was the result of a change in supply or quantity supply? Was the change an increase or decrease? As a result, did the equilibrium price increase or decrease? As a result did the equilibrium quantity increase or decrease?