In the following graphs, label the original equilibrium as Eo, Po, and Qo. Label the new equilibrium as E1, P1, and Q1. Draw arrows along axes to indicate directions of change. Explain as much as necessary in words. No numbers are required here. 1. Show on 5 separate graphs the effect of each of the following events on the equilibrium price and quantity of bananas in the United States: a. a civil war/revolution in El Salvador b. an increase in the demand for banana yogurt c. a decrease in the prices of other fruits d. increased shipping costs due to increased energy costs e. a U.S. tariff on banana imports from Nicaragua.

In the following graphs, label the original equilibrium as Eo, Po, and Qo. Label the new equilibrium as E1, P1, and Q1. Draw arrows along axes to indicate directions of change. Explain as much as necessary in words. No numbers are required here. 1. Show on 5 separate graphs the effect of each of the following events on the equilibrium price and quantity of bananas in the United States: a. a civil war/revolution in El Salvador b. an increase in the demand for banana yogurt c. a decrease in the prices of other fruits d. increased shipping costs due to increased energy costs e. a U.S. tariff on banana imports from Nicaragua.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In the following graphs, label the original equilibrium as Eo, Po, and Qo. Label the new
equilibrium as E1, P1, and Q1. Draw arrows along axes to indicate directions of change.
Explain as much as necessary in words. No numbers are required here.
1. Show on 5 separate graphs the effect of each of the following events on the equilibrium
price and quantity of bananas in the United States:
a. a civil war/revolution in El Salvador
b. an increase in the demand for banana yogurt
c. a decrease in the prices of other fruits
d. increased shipping costs due to increased energy costs
e. a U.S. tariff on banana imports from Nicaragua.

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Step 3: Illustrate the effect of an increase in the demand for banana yogurt

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Step 4: Illustrate the effect of a decrease in the prices of other fruits

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Step 5: Effect of increased shipping costs due to higher energy costs

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Step 6: Illustrate the effect of a U.S. tariff on banana imports from Nicaragua

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