Predict the impact on each market. Use + and – to indicate whether there will be anincrease or decrease in demand (D), supply (S), equilibrium price (P) and equilibriumquantity (Q). If there is no change, use N, and if the change cannot be predicted, use Ufor uncertain. MarketEventDSPQCanadian WineEarly frost destroys a large percentage of the grape crop - - + -Wood-burningThe price of heating oil and natural gas triples + stoves Cell phonesTechnological advances reduce the costs of producing cell phones GoldLarge gold deposits are discovered Fast foodsThe public show great concern over high sodium and cholesterol in fast foods; also, there is an increase in the minimum wage BicyclesThere is increasing concern by consumers about physical fitness; also, the price of gasoline falls.

In the free market, equilibrium price is determined by the forces of demand and supply curve. Demand…

Answered: Predict the impact on each market. Use…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Predict the impact on each market. Use + and – to indicate whether there will be an
increase or decrease in demand (D), supply (S), equilibrium price (P) and equilibrium
quantity (Q). If there is no change, use N, and if the change cannot be predicted, use U
for uncertain.

Market	Event	D	S	P	Q
Canadian Wine	Early frost destroys a large percentage of the grape crop	-	-	+	-
Wood-burning	The price of heating oil and natural gas triples	+
stoves

Cell phones	Technological advances reduce the costs of producing cell phones
Gold	Large gold deposits are discovered
Fast foods	The public show great concern over high sodium and cholesterol in fast foods; also, there is an increase in the minimum wage
Bicycles	There is increasing concern by consumers about physical fitness; also, the price of gasoline falls.

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