Assume that each of the markets below is initially in equilibrium. Then for eachmarket below, suppose that the indicated scenario occurs. Illustrate the effect of eachevent in a diagram and indicate the effects on the equilibrium price and quantity.a. Market: Airbnbs. Scenario: Hotels provide a discount to customers during thewinter.b. Market: Salmon. Scenario: The Ministry of Health warn that consumption ofsalmon may lead to high cholesterol coupled with an increase in the price offish bait. c. Market: Tablets. Scenario: Consumers learn that laptops will be much moreheavily taxed starting with next year’s models. d. Market: Donuts. Scenario: Krispy Kreme opens a franchise in Barbados. e. Market: E-cigarettes Scenario: The government places a tax on e-cigaretteproducers to discourage smoking coupled with the private sector running adcampaigns on the detrimental effects of smoking
Assume that each of the markets below is initially in equilibrium. Then for each
market below, suppose that the indicated scenario occurs. Illustrate the effect of each
event in a diagram and indicate the effects on the
a. Market: Airbnbs. Scenario: Hotels provide a discount to customers during the
winter.
b. Market: Salmon. Scenario: The Ministry of Health warn that consumption of
salmon may lead to high cholesterol coupled with an increase in the price of
fish bait.
c. Market: Tablets. Scenario: Consumers learn that laptops will be much more
heavily taxed starting with next year’s models.
d. Market: Donuts. Scenario: Krispy Kreme opens a franchise in Barbados.
e. Market: E-cigarettes Scenario: The government places a tax on e-cigarette
producers to discourage smoking coupled with the private sector running ad
campaigns on the detrimental effects of smoking
Step by step
Solved in 2 steps with 14 images
