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- 1 a. Sketch a proof of existence of equilibrium. You may assume that aggregate excess demand for each commodity is single valued finite and continuous for all pETT where is the price simplex.Using diagrama, explain how the change in events impact equilibrium price and quantity Supply a d demand for bus rides when there is a simutaneous increase in bus driver wahes and increase in income.In 2018, a cold front in Barbados increased both the demand for water heaters andgasolines. The usage of gasoline was 581 tonnes, an increase from 499 tonnes in theprevious year. The Petroleum Company of Barbados advised Government officials thatdemand could outweigh supply and asked companies to increase the supply. They alsoasked major gasoline users, such as power plants, to reduce demand.i. Illustrate the effect of the cold front on the demand for gasoline using a demandcurve diagram over the two years. ii. Assuming the Petroleum Company of Barbados did not issue a directive for anincrease in supply and a decrease in demand, explain the problem that would existin the economy and how would this be corrected over time. iii. Illustrate the effect of major gasoline suppliers increasing supply as well as usersreducing their demand. iv. Discuss one factor EACH that you think influence demand and supply for waterheaters. Provide examples v. Is demand for gas is price elastic or price…
- In 2018, a cold front in Barbados increased both the demand for water heaters andgasolines. The usage of gasoline was 581 tonnes, an increase from 499 tonnes in theprevious year. The Petroleum Company of Barbados advised Government officials thatdemand could outweigh supply and asked companies to increase the supply. They alsoasked major gasoline users, such as power plants, to reduce demand. i. Illustrate the effect of the cold front on the demand for gasoline using a demandcurve diagram over the two years. ii. Assuming the Petroleum Company of Barbados did not issue a directive for anincrease in supply and a decrease in demand, explain the problem that would existin the economy and how would this be corrected over time.How do you solve for quanitty demanded and quantity supplied in this scenarioSolve fo the Solve for the . Supply and demand function /equation Show your graph Supplicd Price Quantity Demanded I Quantity 127.75 So 01
- Consider the market for minivans. For each of the events listed hereidentify which of the determinants of demander supply are affectedAlso indicate whether demand or supply increases or decreases. Thendraw a diagram to show the effect on the price and quantity of miniamsa. People decide to have more childrenb. A strike by steelworkers raises steel prices.c. Engineers develop new stated machinery for the production ofminivans,d. The price of sports utility vehicles risese. A stock market crash lowers people's wealthIf Apply temporarily can’t meet demand for a product,should it raise the price to bring supply and demand intobalance? Why or why not?l Fido ? 1:13 PM 100% AA ezto.mheducation.com Problem 3-5 (Algorithmic) The demand and supply for a particular commodity are given by the following two equations: Demand: P = 12 – 0.2Qd and Supply: P = 6 + 0.2Qs Where Qd and Qş are quantity demanded and quantity supplied, respectively, and P is price. Using the equilibrium condition Q = Qd, determine equilibrium price and equilibrium quantity. Equilibrium price = $0 Equilibrium quantity = O units Graph the two equations to substantiate your answer. Instructions: 1. Use the line tools Qd and Qs to draw the demand and supply curves for P = 6 and 12. 2. Use the drop line tool E to identify the equilibrium quantity and price. 15 Tools 12 Qd 9 3 10 20 30 Quantity
- Whether the product market or the labor market, what happens to line equilibrium price and quantity for each of the four possibilities: increase in demand, decrease in demand, increase in supply; and decrease in supply.Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans. Sketch a demand and supply diagram to support your answers. The number of people at the most common ages for home-buying increases. People gain confidence that the economy is growing and that their jobs are secure. Banks that have made home loans find that a larger number of people than they expected are not repaying these loans. Because of a threat of a war, people become uncertain about their economic future. The overall level of saving, in the economy diminishes. The federal government changes its bank regulations in a way that makes it cheaper and easier for banks to make home loans.Can you propose a policy that meld induce the market to supply more rental housing units?
