-How has Covid-19 affected the market for gasoline? Which of the main influences of supply and demand do you think were responsible for the price changes? (See textbook pages 90-91 and 97-98.) Be specific and explain why and how the “main influences” you chose had an impact on the gasoline market. b Answered: Gas x G On the deman x← → CM GmailChrome File Edit View History Bookmarks Profiles Tab Window HelpG!!!!QipA₁XContent x G-How has Covi XG How has Covic X | Homework and Xplus.pearson.com/products/160693/pages/134?locale=&isTpi=Y&redirectURL=https://plus.pearson.com/bookshelf&lms=YYouTubeKnowing the Love...increases.Chapter 4: Demand and SupplyContentXP Page 98X98 □Prices of Resources and Other InputsSupply changes when the price of a resource or other input used to produce thegood changes. The reason is that resource and input prices influence the cost ofproduction. The more it costs to produce a good, the smaller is the quantity sup-plied of that good at each price (other things remaining the same). For example, ifthe wage rate of bottling-plant workers rises, it costs more to produce a bottle ofwater, so the supply of bottled water decreases.℗COVID-19 App X +Expected Future PricesExpectations about future prices influence supply. For example, a severe frost thatwipes out Florida's citrus crop doesn't change the production of orange juice today,but it does decrease production later in the year when the current crop would nor-mally have been harvested. Sellers of orange juice will expect the price to rise in thefuture. To get the higher future price, some sellers will increase their inventory offrozen juice, and this action decreases the supply of juice today.Number of SellersAs the number of sellers in a market increases, the supply increases. For exam-ple, many new sellers have developed springs and water-bottling plants in theUnited States, and the supply of bottled water has increased.ProductivityProductivity is output per unit of input. An increase in productivity lowers the costof producing the good and increases its supply. A decrease in productivity has theopposite effect and decreases supply.Technological change and the increased use of capital increase productivity.Mon Apr 10 5:54 PMKPM b Answered: Gas x G On the deman x← → CM GmailChrome File Edit View History Bookmarks Profiles Tab Window HelpG!!!!QipA₁XContent x G-How has Covi XG How has Covic X | Homework and Xplus.pearson.com/products/160693/pages/134?locale=&isTpi=Y&redirectURL=https://plus.pearson.com/bookshelf&lms=YYouTubeKnowing the Love...98Part 1 • INTRODUCTIONChapter 4: Demand and SupplyContentX98P Page 98□XA Change in the Price of a Substitute in Production The supply of a good decreasesif the price of one of its substitutes in production rises; and the supply of a goodincreases if the price of one of its substitutes in production falls. That is, the supplyof a good and the price of one of its substitutes in production move in oppositedirections. For example, a clothing factory can produce chinos or button-fly jeans,so these goods are substitutes in production. When the price of button-fly jeansrises, the clothing factory switches production from chinos to button-fly jeans, so thesupply of chinos decreases.A Change in the Price of a Complement in Production The supply of a goodincreases if the price of one of its complements in production rises; and the supplyof a good decreases if the price of one of its complements in production falls. Thatis, the supply of a good and the price of one of its complements in productionmove in the same direction. For example, when a dairy produces skim milk, it alsoproduces cream, so these goods are complements in production. When the priceof skim milk rises, the dairy produces more skim milk, so the supply of creamincreases.℗COVID-19 App X +Prices of Resources and Other InputsSupply changes when the price of a resource or other input used to produce thegood changes. The reason is that resource and input prices influence the cost ofproduction. The more it costs to produce a good, the smaller is the quantity sup-plied of that good at each price (other things remaining the same). For example, ifthe wage rate of bottling-plant workers rises, it costs more to produce a bottle ofwater, so the supply of bottled water decreases.Mon Apr 10 5:54 PMKP

Factors affecting demand and supply are important in determining market equilibrium, which is the…

Answered: How has Covid-19 affected the market…

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC