(b) Explain the concept of market equilibrium with an appropriate diagram using the data provided below . The table below refers to the market data for washing machines.
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- The city of Rye has a large number of video arcades. The demand by patrons in thousands per week is Qd=200 - 2P and the supply is Qs= 2P where P is the price in cents charged to play a game. what is the Equilibrium number (quantity) of games played? What is the equilibrium price? draw a diagram showing the equilibrium in the markeQuestion 3 Market equilibrium is a market state where the supply in the market is equal to the demand in the market. Required: a) Using a suitable diagram to illustrate your answer, explain how the market is ‘self-correcting’ and returns to an equilibrium position if initially the market price was set below the equilibrium market price. b) In the summer, it was observed that there was a decrease in both the price of umbrellas and the quantity of umbrellas sold. Explain this observation in supply and demand terms using diagram. c) If the demand and supply curve for hats are given by the following equations: D = 140 – 7P S = 20 + 3P Where P is the price of hats. Showing all workings, calculate the quantity of hats bought and sold at equilibrium. d) State five factors which could cause the demand curve to shift right.Suppose goods X and Y are complimentary products. Which of the following are correct with respect to the competitive market model of supply and demand? (check all that apply) an increase in the price of good Y will cause an increase in demand for good X and reduce the quantity demanded for good Y an increase in the price of good Y will cause a decrease in demand for good X and reduce the quantity demanded for good Y a decrease in the price of good X will increase the quantity demanded for good X and cause a decrease in demand for good Y a decrease in the price of good X will increase the quantity demanded for good X and cause an increase in demand for good Y
- Market in equilibrium: consider a market for electric vehicles (EVS), where the equilibrium price (P*) is $30,000 per vehicle, and the equilibrium quantity (Q*) is 10,000 vehicles per year. draw the initial supply and demand graph. P qor Q Events: Due to advancements in battery technology, the cost of producing EVs decreases significantly. Additionally, governments around the world introduce stricter regulations on emissions from gasoline-powered vehicles, leading to an increased demand for EVs. Explain how both the supply and demand curves would be affected. Draw the new supply and demand curves on your graph (in red) and predict the changes in equilibrium price and quantity. Demand: Supply: +Lesson 6- Individual and Market Demand Question 5What is the effect of an increase in the number of people working at home on the market for deodorant, all else equal? Show and explain the impact on Dx, Sx, P, Qdx, and/or Qsx assuming a competitive market for deodorant.
- Assume that the graphs show a competitive market for the product stated in the question. Price aa 0 Price a a 0 2₁*Q₂ Quantity Graph A Graph A E₁ Q₁ Q₂ Quantity Graph C Graph B Graph C E₂ KE₁ Graph D D₁ S₁ U None of the above 52 Price 0 Price E₂ E₁ Q₂ Q₁ Quantity Graph B E2 KE₁ Q₂ Q₁ Quantity Graph D D₁ Select the graph above that best shows the change in the market specified in the following situation: In the market for ramen noodles (an inferior good), when consumers experience a substantial fall in income due to an economic recession. D₂ S₂ O 55....... Problem 03-09 (part b) Suppose the price of grapefruit falls drastically. Instructions: Depict how this event will affect the market for oranges by dragging the appropriate curve in the graph. 1 Market for oranges Price ($/orange) P* Q* Quantity (oranges/week) demand EQ4: Explain the four criteria are important in judging economic outcomes Q5: A- Beef supplies are sharply reduced because of drought in the beef-raising states, and consumers turn to chickens as a substitute for beef. How would you illustrate this change in the beef market in supply-and-demand terms? B- In December, the price of Christmas trees rises and the number of trees sold also rises Is this a violation of the law of demand?
- Assume that the market for soap in Cintra is perfectly competitive. Demand is downward sloping and supply is upward sloping. All consumers and firms are identical. a) The government introduces a requirement that firms must make soap from biodegradable material only. Firms now need to use more costly ingredients to produce soap. What is the predicted impact of this restriction on market price and quantity in the Cintra soap market? Explain your reasoning. A diagram is not an explanation. Your explanation needs to be sufficient without a diagram. b) Data from the 2021 flu season shows a decrease in both market price and market quantity in the Cintra soap market. Over this same period, the price of hand sanitizer fell. Claim: The change in the price of hand sanitizer could explain the changes in the soap market. Agree, Disagree or It depends? Explain your reasoning. A diagram is not an explanation. Your explanation needs to be sufficient without a diagram.. c) Flu season has started. More…5. The demand and supply functions of a computer accessory are D(x) = 4.5 - 2.5x and S(x) 0.0375 +0.125x, respectively. What is the market equilibrium quantity and price? =s) In one graph, show what would happen to the market price and quantity for lemons, which can be produced from the same resources as bananas, as a result of the new findings above bananas.