8:36( +92 349 3322246 A%26A3+ECON53...Applications and Analysis #3ECON 53 – Intro MicroeconomicsAnswer all questions with full explanations and clear, neatlydrawn, graphs where requested. You should type the verbal partof your answers. For graphs, you can draw them on thecomputer if you're comfortable with that, or if you have a tablethat allows you to draw by hand. Otherwise, you can draw thegraphs by hand and then take picture and insert it in yourproblem set in the appropriate place (or at the end), or you canscan your entire problem set, including drawings, into one PDF.For questions 1&2, draw one graph of the market indicated foreach question and explain and illustrate the effect on the marketof the event described, by completing parts a-d below for eachquestion.a) Draw a clearly labeled supply-demand diagram for themarket, showing the initial equilibriumprice and quantity (indicated with P*, Q* on the P andQ axes respectively.)b) Does the event shift the supply curve or the demandcurve (it will only shift one of the curves.)In what direction? Explain why.c) On the same graph as in part (a) show the shift in thecurve that you described in part (b) above.Show the new equilibrium price and quantity resultingfrom this shift (indicated with P,*, Q* nthe P and Q axes respectively.)d) Explain what the supply and demand model indicateswill happen to equilibrium price andquantity in this market due to the event you described.Does this make sense based on what youknow from living in markets your whole life?1. Market: Commercial office space (Q is square footage ofrental office space, P is $ per sq footage rent.)Event:The extensive work-from-home necessitated byCOVID-19 makes businesses realize thatmany employees can be just as productive fromhome and they don't need to require peopleto be in the office always, or even often.2. Market: AutomobilesEvent:Increase in steel tariffs, as we saw in 2018, raisesthe price of steel used to make cars.

Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Answered: a) Draw a clearly labeled 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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Brick and mortar retail stores were particularly hard hit by the pandemic and several large chains went bankrupt. Others survived by developing or switching to online sales platforms and developing systems like a curbside pickup. Using the lessons of supply and demand analysis, and in particular, the discussion of demand and supply shifters, answer the following and explain your answer: 1) Do these innovations affect supply or demand, imposing the â€all else constantâ€ assumption (the only one can be affected). 2) Identify the shifter. 3) Which direction does the curve you identified shift and why? 4) Describe what happens to price and quantity at the new equilibrium.
Suppose firms exit the market for widgets. This would A (increase/decrease) the A (supply/demand) of widgets. At the same time, health researchers publish research that widgets increase your risk for cancer. This would A (increase/decrease) the A (supply/demand) for our widgets. Suppose the change in demand is stronger than the change in supply, the equilibrium price of widgets (increases/decreases/ambiguously changes). A/ changes), and the equilibrium quantity of widgets A (increases/decreases/ambiguously
This problem involves solving demand and supply equations together to determine price and quantity. a. Consider a demand curve of the form QD=-2P+20, where QD is the quantity demanded of a good and P is the price of the good. Graph this demand curve. Also draw a graph of the supply curve Qs =2P-4, where Qs is the quantity supplied. Be sure to put P on the vertical axis and Q on the horizontal axis. Assume that all the Qs and Ps are nonnegative for parts a, b, and c. At what values of P and Q do these curves intersect-that is, where does QD = Qs ? b. Now, suppose at each price that individuals demand four more units of output-that the demand curve shifts to QD - 2P+24. Graph this new demand curve. At what values of P and Q does the new demand curve intersect the old supply curve-that is, where does QD = Qs ? c. Now finally, suppose the supply curve shifts to Q's=2P-8. Graph this new supply curve. At what values of P and Q does QD=Q's? Show all working calculations and label garph with…
a) Derive the goods market demand curve in terms of the output (Y) and the exogenousvariables:c0,c1,b0,b1,g0,g1andT. Show your work for full credit. b)Draw the Goods Market Equilibrium. Be sure to label all curves, label the equilibrium point, and label the slope of each curve. c)Solve for the equilibrium output (Y) in terms of the exogenous variables:c0,c1,b0,b1,g0,g1andT. Show your work for full credit. d)Supposeg1increases, but stillc1+b1+g1<1. Using a graph of the goods market, show how we would represent an increase in the value ofg1on equilibrium output y. Be sure to label all axes, curves, and equilibrium points. e)Suppose instead,c1+b1+g1= 0. Is the equilibrium in the goods market still possible? If so, what is the equilibrium output? You must explain your answer to receive full credit.
Demand, Supply, and Market Equilibrium - Think of a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc...). Explain how the law of demand affected your purchase. Give specific examples of how the determinants of demand and supply affect this product (T-I-P-E-N and P-R-E-S-T). What happens to the demand curve and the supply curve when any of these determinants change? What would cause a change in demand versus a movement along the same demand curve for this product? How would you determine the new equilibrium price and quantity that result from these changes? Can you demonstrate some of these changes graphically? Price Elasticity of Demand - Consider a product that you have purchased recently. If the price of this item increases, how would you adjust your purchases? Is the Demand for this product Price Elastic or Price Inelastic? Justify your classification by applying the determinants of elasticity to…
For the questions that follow complete the steps below in order: 1. Read the scenario 2. Determine if the scenario represents a change in supply (TIGERS) or demand (TIRES) 3. Draw a supply and demand graph labeling all axis and curves 4. Draw the correct curve shifting and label that you determined in #2 above 5. Draw an arrow showing price increasing or decreasing in the space provided You can complete this on a separate sheet of paper or directly on the assignment and then upload to the review market equilibrium dropbox. An example has been provided for you. Example: New technology is found that increases productivity in all pizzerias across the country. How will this affect the market for pizza? This will affect the supply curve because it is technology. Technology is a determinant of supply. It will increase the supply of pizza and so the supply curve will shift to the right. P P1 P2 S D Q1 Q2 Q S2 In this case from the first equilibrium point to the second price decreases and…
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Suppose the supply of a good is given by the equation Q = −6+2P and the demand for the good is given by the equation QD = 14 - 2P, where quantity (Q) is measured in millions of units and price (P) is measured in dollars per unit. The equilibrium quantity in this market is 4 million PRICE (Dollars per unit) the following graph, plot the demand curve using the blue line (circle symbol) and plot the supply curve using the orange line (square symbol). Then place the black point (plus symbol) at the equilibrium price and quantity. Dashed drop lines will automatically extend to both axes. 10 9 8 7 2 1 0 0 1 2 3 4 5 6 7 QUANTITY (Millions of units) 8 units and the equilibrium price is 9 10 Demand Supply $5. Equilibrium
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B4 Using well-labeled supply and demand curves show how the following events will affect the market for gold. a) A large deposit of gold is found in South Africa. b) An increase in the income per capita of a developing country leads to an increase in the global demand for gold. c) There is government ban on mining gold for environmental concerns. d) A production technology reduces the cost of mining.
Supply and Demand- End of Chapter Problem The market for many goods changes in predictable ways, according to the time of year, in response to events such as holidays, the vacation times, seasonal changes in production, and so on. For the following case, shift the supply and demand curves graph below and move the equilibrium point to its new position. Note that supply and demand may shift simultaneously. Case: The price of a Christmas tree is lower after Christmas than before, but fewer trees are sold. Market for Christmas Trees Page 256 Market for Christmas Trees E Quantity of trees Price per tree

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