iv. Due to a shortage of maize, the demand for rice increases (the demand curve shifts to the right). In the supply and demand diagram for the rice market predicts that A. the equilibrium price rises B. the equilibrium price falls C. the change in the equilibrium price is ambiguous D. the equilibrium price remains unchanged

iv. Due to a shortage of maize, the demand for rice increases (the demand curve shifts to the right). In the supply and demand diagram for the rice market predicts that A. the equilibrium price rises B. the equilibrium price falls C. the change in the equilibrium price is ambiguous D. the equilibrium price remains unchanged

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 5SCQ: Lets think about the market for air travel. From August 2014 to January 2015, the price of jet fuel...

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Review Figure 3.4. Suppose the price of gasoline is 1.60 per gallon. Is the quantity demanded higher or lower than at the equilibrium price of 1.40 per gallon? What about the quantity supplied? Is there a shortage or a surplus in the market? If so, how much? Figure 3.4 Demand and Supply of Gasoline
Lets think about the market for air travel. From August 2014 to January 2015, the price of jet fuel increased roughly 47. Using the four-step analysis, how do you think this fuel price increase affected the equilibrium price and quantity of air navel?
If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded of that product, will another 10 decrease in the price cause another 3 increase (no more and no less) in quantity demanded?
Consider the market for minivans. For each of the events listed here, identify which of the determinants of demand or supply are affected. Also indicate whether demand or supply increases or decreases. Then draw a diagram to show the effect on the price and quantity of minivans. a. People decide to have more children. b. A strike by steelworkers raises steel prices. c. Engineers develop new automated machinery for the production of minivans. d. The price of sports utility vehicles rises. e. A stock market crash lowers peoples wealth.
1. Consider the market for minivans. Indicate the impact if any on demand, supply, price and quantity. a) People decide to have mor children. b) A strike by steelworkers raises steel prices c) Engineers develop new automated machinery for the production of minivans. d) The price of station wagons rises e) A stock market crash lowers peoples wealth
In the market for diamonds, assuming everything else remains unchanged, the equilibrium price of diamonds will decrease if A there is a shortage of diamonds.B the price of gold, a complement, decreases.C the supply of diamonds decreases.D the price of cubic zirconia’s, a substitute, increases.E there is a technological improvement in mining equipment.
What effect will each of the following have on the supply of auto tires?a. A technological advance in the methods of producing tires.b. A decline in the number of fifirms in the tire industry.c. An increase in the prices of rubber used in the production of tires.d. The expectation that the equilibrium price of auto tires will be lower in the future than currently.e. A decline in the price of the large tires used for semi trucks and earth-hauling rigs (with no change in the price of auto tires).f. The levying of a per-unit tax on each auto tire sold.g. The granting of a 50-cent-per-unit subsidy for each auto tire produced.
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Question 8
a. Fuel efficiency regulations reduce the use of steel in automobile production and increase the use of lighter materials such as aluminum. Also, increased import restrictions are imposed that limit the amount of steel that can be imported into the U.S. Price Market for steel in the U.S. Quantity S b. The developments described have a negative D a negative effect on the equilibrium quantity. effect on the equilibrium price of steel and
Suppose we are analyzing the market for Sweet "Halwa" .What will happen to the equilibrium price and quantity of sweet if the price of sugar rises a little during Ramadan and Eid al-Fitr? Select one: a. Price will stay exactly the same and Quantity will decrease b. Price will increase and the Quantity will decrease c. Quantity will stay exactly the same and the price will increase d. None of the answers are correct e. Price will increase and the Quantity will increase O f. Price will decrease and the Quantity will decrease
If buyers and sellers of drywall (gypsum plasterboard) both expect the price of drywall to increase in the future, then: a. the equilibrium price of drywall may or may not change, but the equilibrium quantity of drywall will fall. b. the equilibrium price of drywall will rise, but the equilibrium quantity of drywall may or may not change. c. the equilibrium price of drywall may or may not change, but the equilibrium quantity of drywall will rise. d. the equilibrium price of drywall will fall, but the equilibrium quantity of drywall may or may not change.