5. Illustrate in appropriate diagram (change in demand or change in supply) the impact on the good or service of the following events: A. Nominal income of consumers rise and potatoes are considered inferior goods B. Buyers of gold expect that the price of gold will decrease in the near future C. Producers of gold expect that the price of gold will rise in the near future

5. Illustrate in appropriate diagram (change in demand or change in supply) the impact on the good or service of the following events: A. Nominal income of consumers rise and potatoes are considered inferior goods B. Buyers of gold expect that the price of gold will decrease in the near future C. Producers of gold expect that the price of gold will rise in the near future

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. Refer to the information provided in Figure below to answer the following questions. Price of pizza +6 0 A B D₁ D₂ Number of pizzas per month D3 a. Under what situation consumer moves from A to B? When they move from C to A? Explain the reasons in both cases. b. Imagine your demand curve for pizza last year was D3. Now the demand is D1. Write down possible reasons for this. Explain this carefully c. Can you expect the demand to increase at the same price? Explain the reasons carefully. d. Can you expect the demand to decrease at the same price? Explain this carefully.
Figure: The Demand and Supply of Wheat Price (per bushel) $10 9 8 7 6 5 4 3 2 1 0 Reference Ref 3-6 2 B. $5: 5,000 C. 56; 7,000 D. $8; 8,000 4 8 10 12 Quantity of wheat (thousands of bushels per period) 6 (Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat. If there is an increase in demand of 2,000 bushels at each price, the equilibrium price and quantity will be and bushels, respectively. A. $7; 7,000
(Figure: Shift in Supply 1) Use the figure to answer the question. Price Old supply New supply Quantity Which of the following events would NOT lead to a shift of the supply curve from Old supply to New supply? O an increase in the number of firms in the market O an increase in demand for the product O decreased taxation of raw materials used by producers O technological advance in production techniques
) Listen|> The following diagram depicts: Good B Good A OA decrease in the level of income. OA decrease in the price of Good A. O An increase in the price of Good A. An increase in the price of Good B. Question 7 (2 points)
14. Application: Demand elasticity and agriculture The following graph illustrates the market for walnuts. It plots the monthly supply of walnuts and the monthly demand for walnuts. Suppose an increase in pests destroys a major portion of walnut trees. Show the effect this shock has on the market for walnuts by shifting the demand curve, supply curve, or both. 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 ton) 40 32 8 0 8 16 I I 1 11 24 Supply Demand QUANTITY (Thousands of tons) 32 Total Revenue (Thousands of Dollars) 40 Demand D Supply ? One of the growers is pleased with the price increase caused by the pests because she believes it will lead to increased revenue. Using elasticities, you will be able to determine whether this price change will lead to a rise or fall in total revenue in this market. Using…
6. Movements along versus shifts of supply curves Consider the market supply of donuts. Complete the folowing table by indicating whether an event wi cause a movement along the upply curve for donuts or a sht of the supply curve for donuts, holding all else constant. Event Movement Along Shift A change in technalogy that makes it less costly to produce donuts An increase in the price of donuts A change in expectations about the future price of donuts
12. The following table shows the aggregate supply and demand data for a country. Aggregate Supply Price Aggregate Level Demand 200 10,000 4,000 300 9,000 6,000 400 8,000 8,000 500 7,000 9,000 600 6,000 9,500 700 5,000 9,800 800 4,000 9,900 What is the equilibrium price level? (A) 200.B) 400 (C) 500 (D) 800
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1. Which of the following statements accurately describes the global food market? а. Globalization is causing the food market to become more decentralized, with a smaller percentage of the global market being controlled by large companies b. Hedge funds, futures markets, and index funds have produced increasingly stable food prices over the last three decades С. Although global food producers spend billions advertising their products, there is no evidence that exposure to advertising increases food consumption d. The dumping of unhealthy food products and excess grain production by high income countries has increased malnutrition in some low- and middle- income countries
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