Equilibrium ScenariosOn a separate piece of paper, use an appropriately labeled supply/demand graph to answer thefollowing questions. For each question, you need to a) state the determinant of demand(TRIPE)/supply (NICEJAG) that caused the change, b) graph the change, and c) tell me whathappens to equilibrium price and quantity.1. What would be the effect of an increase in automobile worker wages on the market forautomobiles?2. What would be the effect of a decline in the price of personal computers on the market forsoftware?3. What would be the effect of an increase in the price of Budweiser beer on the market forCoors beer?4. What would be the effect of a governmental subsidy on the market for AIDS research?5. What would be the effect of a decline in the price of irrigation equipment on the market forcorn?6. What would be the effect of the government subsidizing the growers of watermelons onthe market for watermelons?7. What would be the effect on the market for Big Macs if McDonalds starts using highlyefficient robots to make them?8. What would be the effect on the market for German tanks during WWII if the Alliesbombed tank factories?9. What would be the effect on the market for deodorant if the U.S. government places a taxon its production?10. What would be the effect on the market for gasoline if cheap hydrogen fuel celltechnology is perfected?11. What would be the effect on the market for leg warmers if they are no longer consideredfashionable?12. What would be the effect on the market for Porches if there is an increase in incomes inthe U.S?13. What would be the effect on the market for Lucky Charms if medical researchersdiscover that eating Lucky Charms makes one cooler?

The demand and supply model is a concept in economics that explains how prices and quantities of…

Equilibrium Scenarios On a separate piece of paper, use an appropriately labeled supply/demand graph to answer the following questions. For each question, you need to a) state the determinant of demand (TRIPE)/supply (NICEJAG) that caused the change, b) graph the change, and c) tell me what happens to equilibrium price and quantity. 1. What would be the effect of an increase in automobile worker wages on the market for automobiles? 2. What would be the effect of a decline in the price of personal computers on the market for software? 3. What would be the effect of an increase in the price of Budweiser beer on the market for Coors beer?

Equilibrium Scenarios On a separate piece of paper, use an appropriately labeled supply/demand graph to answer the following questions. For each question, you need to a) state the determinant of demand (TRIPE)/supply (NICEJAG) that caused the change, b) graph the change, and c) tell me what happens to equilibrium price and quantity. 1. What would be the effect of an increase in automobile worker wages on the market for automobiles? 2. What would be the effect of a decline in the price of personal computers on the market for software? 3. What would be the effect of an increase in the price of Budweiser beer on the market for Coors beer?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider each of the scenarios before, and explain what the effect of the given changes would be on the market for the good in bold that was originally in equilibrium. State which curve(s) shift (supply, demand, both, neither), and whether price and quantity are higher or lower after the change, or if this is not possible to determine. (a) An increase in the cost of dorm rooms on the market for apartments in the U-district? (b) The government increases the consumption tax rate for consumersp by 5% on the market for Rolex watches? (c) The increase in price of milk on cakes? Note: The solution should not be hand written.
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Suppose the equation for demand can be expressed as P = 40 – 2Q. The equation for supply can be expressed as P = Q. Find the equilibrium price and quantity. Be able to draw the graph that illustrates your answer.
What will happen to Demand(D), Supply(S), new Equilibrium Price(P*), and new Equilibrium Quantity(Q*) when the market condition changes as the following. Explain the reason and draw relevant graphs supporting your analysis. A. Market: Plywood in Florida Event: The Hurricane Center increases the probability of Hurricane to make a landfall in Florida B. Market: Skateboards Event: The price of fiberglass rises (Fiberglass is a substance used for making skateboards) C. Market: Chicken Event 1. Avian flu spreads fast hurting chicken producers AND, simultaneously, Event 2. Beef prices fall a lot, making beef more affordable to consumers (Chicken and beef are substitutes)
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Suppose that in 2007 Ford sold 500,000 Mustangs at an average price of $18,800 per car; in 2008, 600,000 Mustangs were sold at an average price of $19,500 per car. From these statements what changes in supply or demand on the market for Mustangs produced such changes in equilibrium? (One graph. Start by plotting two points (price versus quantity, shift either supply or demand, not both) and then draw supply and demand graphs through them in a way that explains the change in the equilibrium from 2007 to 2008.