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- How will a simultaneous increase in the price of a substitute good and an improvement in production technology affect market demand and/or supply, equilibrium price and equilibrium quantity in a competitive market?In Country A, it is popular for the citizen to have a glass of orange juice together with a piece of cupcake at the tea time. Recently, the citizens found that the price of orange juice increases dramatically. What are the effects on the equilibrium price and equilibrium quantity in the market of cupcake? No diagram is needed but you need to describe how the curve(s) shifts in your written explanation.What is the difference between substitutes and complements? Indicate two goods that are substitutes for each other. Indicate two goods that are complements.
- The island nation of Coconutistan recently suffered an unfortunate accident which took its water treatment plant offline, leaving residents without clean water in their homes. The plant for bottling water was unaffected by the accident. The graph shows the supply and demand for bottled water before the accident. Assume that $6 is the maximum price for a case of bottled water according to the price gouging laws on the island. Shift one or more curves to show the effect of the accident on the market for bottled water. Price ($)Quantity of bottled water by the case01002003004005006007008009001,000012345678910SupplyDemandPrice ceiling What is the amount of the shortage after the accident? shortage:No written by hand solution Suppose that Sam and Teresa are the only consumers of dance classes in a particular market. The following table shows their annual demand schedules: Price Sam's Quantity Demanded Teresa's Quantity Demanded (Dollars per class) (Classes) (Classes) 10 32 56 20 20 40 30 12 24 40 4 12 50 0 4 On the following graph, plot Sam's demand for dance classes using the green points (triangle symbol). Next, plot Teresa's demand for dance classes using the purple points (diamond symbol). Finally, plot the market demand forUse supply and demand curves to show and explain how both the equilibrium price and quantity change in each case. a) The increasing adoption of over-the-top media streaming services lead to more people staying at home to watch movies rather than going to a movie theater. Show how this change in behavior affects the market for microwave popcorn. b) The severe winter storm in Texas agricultural regions caused a massive electricity generation failure and increased the costs of irrigation and energy. How would this affect the market for fruits and vegetables?
- Suppose that Bob and Cho are the only suppliers of pizza slices in a particular market. The following table shows their weekly supply schedules: Price (Dollars per slice) 1 2 3 4 5 PRICE (Dollars per slice) 6 5 0 0 Bob's Quantity Supplied Cho's Quantity Supplied (Slices) 0 (Slices) 5 4 9 On the following graph, plot Bob's supply of pizza slices using the green points (triangle symbol). Next, plot Cho's supply of pizza slices using the purple points (diamond symbol). Finally, plot the market supply of pizza slices using the orange points (square symbol). 4 Note: Line segments will automatically connect the points. Remember to plot from left to right. 8 6 7 12 8 16 QUANTITY (Slices) 12 20 14 24 15 A Bob's Supply Cho's Supply Market SupplyDetermine the equilibrium price and equilibrium quantitySuppose a war breaks out in the Middle East, where a large proportion of the world's oil production takes place. Answer the following questions using supply-and-demand graphs. How will the market for used SUVs be affected? How do the equilibrium price and quantity change? Is there any ambiguity in the change in equilibrium price and/or equilibrium quantity?
- Suppose that Carlos and Deborah are the only suppliers of pieces of cake in some hypothetical market. Their annual supply schedules are given by the following table: Carlos's Quantity Supplied Deborah's Quantity Supplied (Pieces) ITT 20 30 35 40 PRICE (Dollars per piece) (Dollars per piece) 5 Price 0 0 1 2 3 4 5 20 On the following graph, plot Carlos's supply of pieces of cake using the green points (triangle symbol). Next, plot Deborah's supply of pieces of cake using the purple points (diamond symbol). Finally, plot the market supply of pieces of cake using the orange points (square symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. (?) 40 60 80 QUANTITY (Pieces) 100 (Pieces) 120 20 40 55 65 70 Carlos's Supply Deborah's Supply O Market SupplyPlease help me answer all parts. Thank you.What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk, which is used to make lattés, and scientists discovered that lattés reduce heart attacks. A) Both the equilibrium price and quantity would increase. B) Both the equilibrium price and quantity would decrease. C) The equilibrium price would decrease, and the effect on equilibrium quantity would be ambiguous. D) The equilibrium quantity would increase, and the effect on equilibrium price would be ambiguous. E) The equilibrium quantity would decrease, and the effect on equilibrium price would be ambiguous.