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.
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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Predict the impact on each market. Use + and – to indicate whether there will be an
increase or decrease in
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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