4. The government provides a large subsidy to the chip company Frito Lay. How will thisaffect the market for Funyuns (a chip made by Frito Lay)?PRICEQUANTITY5. Technology advances and the company that makes Skittles obtains new software. Howwill this affect the market for the candy?PRICEQUANTITY6. The price of Netflix streaming increases substantially. How will this affect the market forshows streamed on the platform?PRICE For the questions that follow complete the steps below in order:1. Read the scenario2. Determine if the scenario represents a change in supply (TIGERS) or demand (TIRES)3. Draw a supply and demand graph labeling all axis and curves4. Draw the correct curve shifting and label that you determined in #2 above5. Draw an arrow showing price increasing or decreasing in the space providedYou can complete this on a separate sheet of paper or directly on the assignment and thenupload to the review market equilibrium dropbox. An example has been provided for you.Example:New technology is found that increases productivity in all pizzerias across the country. How willthis affect the market for pizza?This will affect the supply curve because it is technology. Technology is a determinant of supply.It will increase the supply of pizza and so the supply curve will shift to the right.PP1P2SDQ1 Q2QS2In this case from the first equilibrium point to the second price decreases and quantityincreases. I can see this because of the movement from P1 to P2 and Q1 to Q2 that I havedrawn.

The demand curve shows the relationship between the price and the quantity demanded by the consumer.…

The government provides a large subsidy to the chip company Frito Lay. How will this affect the market for Funyuns (a chip made by Frito Lay)? PRICE QUANTITY Technology advances and the company that makes Skittles obtains new software. How will this affect the market for the candy? PRICE QUANTITY The price of Netflix streaming increases substantially. How will this affect the market for shows streamed on the platform? PRICE

The government provides a large subsidy to the chip company Frito Lay. How will this affect the market for Funyuns (a chip made by Frito Lay)? PRICE QUANTITY Technology advances and the company that makes Skittles obtains new software. How will this affect the market for the candy? PRICE QUANTITY The price of Netflix streaming increases substantially. How will this affect the market for shows streamed on the platform? PRICE

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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