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.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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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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