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 equilibrium price and quantity. a. Market: Hotels. Scenario: Airbnb provides a discount to customers due to the pandemic. b. Market: Mutton. Scenario: Doctors warn that consumption of mutton may lead to high cholesterol coupled with a decrease in the price of goat feed. c. Market: Motorcycles. Scenario: Consumers learn that cars will be much more heavily taxed starting with next year’s models.
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: Hotels. Scenario: Airbnb provides a discount to customers due to the pandemic.
b. Market: Mutton. Scenario: Doctors warn that consumption of mutton may lead to high cholesterol coupled with a decrease in the price of goat feed.
c. Market: Motorcycles. Scenario: Consumers learn that cars will be much more heavily taxed starting with next year’s models.
d. Market: Caffeinated beverages. Scenario: Starbucks opens a franchise in St.Lucia.
e. Market: Cigars Scenario: The government places a tax on cigar producers to discourage smoking coupled with the private sector running ad campaigns on the detrimental effects of smoking.
f. Market: Ketchup. Scenario: Insects kill half the nation’s tomato crop.
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