Question 28 12 pts Explain the appropriate graph(s) below. Be sure to include a description of your labeled axis and curves. You must explain the directional changes/shifts on the graphs and the resulting effects to the equilibrium price and quantity. a) Draw/Explain a graph showing an economy whose equilibrium quantity is 50 units and equilibrium price is $10.00 for a case of coke. b) If there is a rise in the price of a substitute good (Pepsi), what is the effect on the price and quantity from part (a)? (draw/explain the graph) c) If a tax is placed on the production of coca-cola products, what is the effect on price and quantity from part (a)? (draw/explain the graph) Edit View Insert Format Tools Table 12pt Paragraph BIUA acer v ~ T² ˇ A

As a general rule, is it safe to assume that a change in the price of a good will always have its most significant impact on the quantity demanded of that good, rather than on the quantity demanded of miller goods? Explain.

Explain all the reasons why a decrease in a products price would lead to an increase in purchases.

Consider the demand for hamburgers. If the price of a substitute good (for example, hot dogs) increases and the price of a complement good (for example, hamburger buns) increases, can you tell for sure what will happen to the demand for hamburger? Why or why not? Illustrate your answer with a graph.

What does a downward-sloping demand curve mean about how buyers in a market will react to a higher price?

What is the difference between the demand and the quantity demanded of a product, say milk? Explain in words and show the difference on a graph with a demand curve for milk.

(Price Elasticity and Total Revenue) Fill in the blanks for each price-quantity combination listed in the following table. Now graph this relationship, making sure to label each axis. What relationship have you depicted?

Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. In each case, state how the event will affect the supply and demand diagram. Create a sketch of the diagram if necessary. Cars are becoming more fuel efficient, and therefore get more miles to the gallon. The winter is exceptionally cold. A major discovery of new oil is made off the coast of Norway. The economies of some major oil-using nations, like Japan, slow down. A war in the Middle East disrupts oil-pumping schedules. Landlords install additional insulation in buildings. The price of solar energy falls dramatically. Chemical companies invent a new, popular kind of plastic made from oil.

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?

How do you suppose the demographics of an aging population of Baby Boomers' in the United States will affect the demand for milk? Justify your answer.