9. In recent years, the number of car producers in Chinahas increased rapidly. In fact, China now has morecar brands than the United States. In addition, carsales have climbed every year and automakers haveincreased their output at even faster rates, causingfierce competition and a decline in prices. At the sametime, Chinese consumers' incomes have risen. Assumethat cars are a normal good. Draw a diagram of thesupply and demand curves for cars in China to explairwhat has happened in the Chinese car market.Citu baseball

As economies and societies developed, the study of economics got more complicated. Hence, as a…

Answered: In recent years, the number of car…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Demand is highest for watermelon in the summer, yet that is also when prices are lowest. Draw a graph showing both demand and supply for watermelon in both the summer and the winter (i.e. two demand curves and two supply curves on one graph) that illustrates how this situation could be possible.
What are some general factors that can impact the demand for a product and the supply of a product? Identify at least two factors for each and explain the different ways these determinants can shift supply and demand either left or right.
What does the movement from point A to point C represent on the below graph: Price (dollars per unit) Quantity (millions of units per month) a) Change in quantity demanded. b) Movement up the demand curve c) Decrease in demand. d) Change in demand.
When the price of butter was "low," consumers spent $5 billion annually on its consumption. When the price doubled, consumer expenditures increased to $7 billion. Recently you read that this means that the demand curve for butter is upward sloping (i. e., price and quantity demanded are directly related, as price increases, quantity demanded also increases). Do you agree? Explain.
Draw a demand curve and a supply curve for one of your favourite goods and explain why the point of intersection for demand and supply gives the equilibrium.also illustrate diagrammatically what happens to the equilibrium price and quantity in this market as a result of a decrease in all consumers’ income. Here you have to consider: Whether a change in all consumers’ income has an effect on the demand or the supply side of the market. How to establish the direction of the change (increase or decrease?) How to deduce the impact on the equilibrium. Go back to the original equilibrium; to the point before the consumer income decrease. Now, consider that the market is flooded by new firms wanting to produce the good. Draw this change—again, consider the three points mentioned above. Finally, let’s put the two things together. What happens if you simultaneously decrease income and increase the number of firms involved in the market in terms of the new equilibrium price and quantity? Hint:…
Which of the following would NOT cause an increase in demand for Canadian canola? The price of Canadian canola falls. People are worried about the availability of canola in the future, and so they are hoarding (stockpiling) it now. Other countries need canola to feed their livestock (such as pigs), but they are not able to grow enough themselves. The price of other similar plants increases.
Question #1: On the news there has been outrage over the price of Epipens, a medication needed for allergic reactions to food and bee stings. The price of a two-pack of Epipens has risen from $100 to $600. The number of Epipens purchased fell from 1000 to 400. At the current time, there are no substitutes for this drug Will this increase in price cause a decrease in demand or a decrease in quantity demanded? Illustrate your answer graphically (either by showing a movement along the demand curve or by shifting the demand curve).
Sales of bananas have dropped from 100,000 pounds to 75,000 pounds per day because a freeze resulted in a smaller supply. In the process, the average price of a pound of bananas has risen from $0.80 to $1.00. Which of the following is most likely true? The demand for bananas has increased because of the increase in price.The demand for ice cream (used in banana splits) is likely to decrease.The price of tapes will rise about 25 percent.The total revenue (P times Q) from sales has risen.The quantity demanded of ice cream will increase. Flag this Question
Suppose the technology to manufacture computers improves but due to some recession in the economy, the income of the consumers falls. Assuming computers to be a normal good, what will be the equilibrium quantity and price for computers in this case?"
You are told that a 10% increase in the price of a good has led to a 1% increase in the quantity supplied of the good after one month. Use the information to answer the following questions. How do you describe the supply of this good?
In 2018, economists were predicting that the demand for electric vehicles would rise in 2019, driving up the price of lithium. However, in 2019, this expected increase in demand did not happen. Lithium producers, however, changed their behavior based on these predictions. As a result the price for lithium in 2019 (rose,fell,remained the same) and the quantity of lithium (rose,fell,remained the same)

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