The demand curve for meals at a local Chick-fil-A will shift to the left if: Chick-fil-A offers a free sandwich to people who sign up for their new rewards app. the price of a meal at Chick-fil-A rises. incomes decrease, and Chick-fil-A meals are a normal good. the price of gasoline falls in the area.

Q: Consider the supply curve for wool sweaters. An increase in the price of wool will: decrease the…

A: Th answer is - decrease the supply of wool sweater.

Q: Supply Demand Supply Demand QUANTITY (Boxes) Now suppose Congress passes a new tax that decreases…

A: Imposition of taxes reduced the real income that is purchasing power of individuals.

Q: The price and quantity demanded of a particular smartphone app are shown in the table below.…

A: The curve that depicts various quantities of goods and services being demanded at various price…

Q: Set all variables to their baseline values. How much money do consumers want to spend on spaghetti…

A: Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1%…

Q: If coffee and cream are complements, an increase in the price of coffee will cause the demand for…

A: Complementary goods are the goods that are consumed together. In this case cream and coffee are…

Q: Suppose when a person’s income increases, his or her demand for mac and cheese decreases. What is…

A: There exists a positive relation between income of a consumer and demand for normal good. There…

Q: If an increase in income results in a decrease in the quantity demanded of a good, then the good is…

A: Consumer income is a factor which affects the demand for a good since it dictates how much of a good…

Q: IPhones are mostly made of aluminum. Assume that iPhones are normal goods and that their substitutes…

A: iPhone's are mostly made of aluminium. Here we assume that iPhones are normal goods and that their…

Q: 1. The movement from point A to point B on the graph is caused by   a.  an increase in price.   b.…

A: Demand is made of different combinations of price and quantity demanded.

Q: The price of apples rises from $1.00 per pound to $1.50 per pound. As a result, the quantity of…

A: Cross-price elasticity (Ec) = (Change in quantity of orange / average quantity of orange) / (Change…

Q: buys 80 units of the good at a price of 20 per unit. How many units will the consumer buy when price…

A:

Q: Consider the market for lattes. If consumers view cappuccinos and lattes as substitutes, what would…

A: Given cappuccinos and latte as substitutes. Therefore as the price of cappuccinos decreases, the…

Q: What is the percent change in price of spaghetti between $10 and $12? What is the percent change in…

A: The ratio of the percent change in the quantity demanded (Qd) or supplied (Qs) to the corresponding…

Q: Does a change in consumers’ tastes lead to a movement along the demand curve or a shift in the…

A: Answer to the question is as follows :

Q: Suppose that milk and cereal are consumer complements. Following a decrease in the price of milk,…

A: The complementary goods refer to those goods that are used together as the consumption of one good…

Q: Which of the following will not cause a shift in the demand curve for a good? a) income b) taste…

A: When there is a change in price of good, it causes movement along the demand curve or supply curve.…

Q: f an increase in income leads to an increase in the demand for sushi, then sushi is a normal good. a…

A: The demand curve shows the association between the amounts of commodity demanded by the consumer at…

Q: Consider two markets: the market for waffles and the market for pancakes. The initial equilibrium…

A: The price elasticity of supply refers to a metric that is used to evaluate the responsiveness of the…

Q: The figure below illustrates the market for pumpkins just before the harvest for Halloween.…

A: An elastic demand is one in which the change in quantity is demanded due to a large change in price.…

Q: Indicate how you think each of the following would shift demand in the indicated market: a. The…

A: Demand refers the total amount of goods and services that are willing and able to buy at the…

Q: Income elasticity of demand measures   how responsive price is to changes in quantity demanded. how…

A: In a market, the concept of elasticity is used to explain the relationship between different market…

Q: Explain why each of the following statements is false:   If beer and wine are substitutes, an…

A: 1. The goods that can be used in the place of another good are known as substitute goods. The…

Q: Your research into the vegetable market shows that when the price of vegetables increases by 10%,…

A: Cross price elasticity refers to the percentage change in quantity demanded for one good with…

Market Surplus and Shortage Analysis

In everyday language, a “surplus” indicates that there is an excess of something, while a “shortage” means that there is a scarcity of it. In economics, “market surplus” refers to the condition where the quantity of a certain good more available than what is required or “demanded” by the market. In the same way, a “market shortage” refers to the condition where the quantity of a certain good is less available than what is “demanded” by the market. If quantity in demand is written as Qd and quantity that is supplied is written as Qs, then, the condition Qs > Qd indicates market surplus and condition Qd > Qs indicates market shortage.