Answered: 8. Define Supply/ Demand. Then explain…

8. Define Supply/ Demand. Then explain what happens to supply/ demand when price goes up/ down. Supply: Price 1= Supply: Demand: Demand: Price 1= Supply: Demand:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6) Dodger Baseball!!!! : The Dodgers will host the 2020 MLB All Star Game! Fans are ECSTATIC. Also, the Dodgers will expand seating by 10,000 in the CF Pavilion area. How will that shift the supply and demand curves for Dodger tickets? a. Graph the situation with price of Dodger tickets and quantity of Dodger tickets. Use BLACK for supply, BLUE for demand. Label supply as Sj and S2 and demand as Di and D2. b. Using your knowledge of the laws of supply and demand, explain the shift(s) that have been made in your graph and describe what happened to the equilibrium price and quantity (3-4 bullet points). Make sure to include the either the 8 determinants of demand or 5 determinants of supply. Label the equilibrium points CLEARLY! c. Add a picture of the Dodgers.
When economists talk about supply, they are referring to a relationship between price received for each unit sold and the _________________.. demand schedule market price quantity supplied demand curve
Demand Schedule Supply Schedule P Q P Q 10 30 10 80 9 35 9 74 8 40 8 68 7 45 7 62 6 50 6 56 5 55 5 50 4 60 4 44 3 65 3 38 2 70 2 32 1 75 1 26 1. Graph the demand and supply schedules (above). What are the (approximate) Price and Quantity in this market? 2. Assume that an increase in popularity of the product depicted above means that demand for the product increases by 10%. The means that at every price 10% more units are demanded. Create a column with this new information to the right of the old quantity demanded. 3. Graph this new information and determine the new equilibrium price and quantity. P 10…
8. Suppose that the world price of oil is $70 per barrel and that the United States can buy all the oil it wants at this price. Suppose also that the demand and supply schedules for oil in the United States are as follows: PRICE U.S. QUANTITTY U.S. QUANTITY (S PER BARREL) DEMANDED SUPPLIED 68 16 4 70 15 9. 72 14 74 13 10 76 12 12 a. On graph paper, draw the supply and demand curves for the United States. b. With free trade in oil, what price will Americans oil? What quantity will Americans buy? How much of this will be supplied by American producers? How much will be imported? Illustrate total imports on your graph of the U.S. oil market. pay for their c. Suppose the United States imposes a tax of $4 per barrel on imported oil. What quantity would Americans buy? How much of this would be supplied by American producers? How much would be imported? How much tax would the government collect? d. Briefly summarize therimpact of an oil import tax by explaining who is helped and who is hurt…
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…
Practice with Determinants: SUPPLY Supply 1-4 1. The following headline appeared in the London Times, "England's sheep population nearly destroyed by famine!" How will this affect the supply of wool around the world? Show the shift in supply and name the determinant. "Name the determinant: 2. In an effort to encourage economic growth, the United States government has cut corporate income taxes by 20%. How will this affect firms' ability to supply their products? Show the shift in supply and name the determinant. "Name the determinant:
13. The table below gives part of the supply schedule for personal computers in the United States. Price Quantity Supplied before tech change Quantity Supplied after tech $1,100 $900 12,000 8,000 change 13,000 9,000 a) Calculate the price elasticity of supply when price rises from $900 to $1,100 using the arc elasticity formula (the midpoint method). b) Now suppose that technology changes such that at every price, 1000 more computers are supplied. Now, as prices rise from $900 to $1,100, is the elasticity of supply smaller than, larger than, or equal to the elasticity in part a)? c) Does the change in b) change the slope of the supply curve? Are slope and elasticity the same thing? Explain.
Suppose the national institutes of health publishes a study finding that coffee drinking reduces the probability of getting colon cancer 1. How do you image this will affect the market of coffee? 2. Why 3, Which determinant of demand or supply is being affected? 4. How will the change of the equilibrium price and quantity of coffee? Explain your reasoning
6. How will the following events affect equilibrium price and quantity for the product highlighted in italics? In each case, identify how the supply or demand curve shifts. a. A drop in consumer incomes influences the demand for dry cleaning b. Declining numbers of law school graduates affect the supply of legal services c. Consumer expectations that the price of turkeys will soon rise affect the current demand for turkeys d. A cost-saving technological innovation influences the supply of rice
Price Saved O² B Supplyo Save The movement from A to B The movement from A to D The movement from C to B The movement from D to C Quantity Consider the graph in Figure 3-1. Which of the following best represents an increase in supply? Supply₁
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What are some general factors that can impact the demand for a product and the supply of a product? Identify at least two factors for each and explain the different ways these determinants can shift supply and demand either left or right.