Explain whether each of the following statements describes a change in demand or a change in quantity demanded. specify whether each change represents an increase or a decrease. a. Payless Shoe Source sees a 35 per cent increase in sales of its athletic shoes during a 1 week, half-price sale. b. Aisha receives a demotion which results in a cut in her salary and she is no longer able purchase her usual fruit for the week. c. When the price of chicken unexpectedly rises, many consumers choose to purchase corned beef instead. d. Given the existing problems with its airbag system, Honda Motors has experienced a decline in sales of its Accord automobile. e. Ian, a manager at Kiddles Supermarket, decides to forego his vacation to New York when he learns that all employees’ salaries will be cut by 5 percent at the end of the month.
Explain whether each of the following statements describes a change in demand or a change in quantity demanded. specify whether each change represents an increase or a decrease.
a. Payless Shoe Source sees a 35 per cent increase in sales of its athletic shoes during a 1 week, half-
b. Aisha receives a demotion which results in a cut in her salary and she is no longer able purchase her usual fruit for the week.
c. When the price of chicken unexpectedly rises, many consumers choose to purchase corned beef instead.
d. Given the existing problems with its airbag system, Honda Motors has experienced a decline in sales of its Accord automobile.
e. Ian, a manager at Kiddles Supermarket, decides to forego his vacation to New York when he learns that all employees’ salaries will be cut by 5 percent at the end of the month.
The demand for stoves is given by QD=450−20? and the market supply is given by QS = 20 + 100P
i. In equilibrium, how many stoves would be sold and at what price?
ii. What would happen if suppliers set the price of stoves at $15? Explain the market adjustment process.
iii. Using the response in part (i), calculate the price elasticity of demand for stoves when price changes to $10.
b. The rent for apartments in Bridgetown has seen a significant increase during the pandemic. However demand has also seen a sharp increase. This conflict with the
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