When the Covid outbreak began, prices of face masks escalated or, in areas where sellers kept prices lower, none could be found on the shelves. For those who received substantially higher prices, let’s assume they reaped significant economic profits. How would theory predict that the market for masks would respond? What market structure best characterizes the market for masks?
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When the Covid outbreak began, prices of face masks escalated or, in areas where sellers kept prices lower, none could be found on the shelves. For those who received substantially higher prices, let’s assume they reaped significant economic profits. How would theory predict that the market for masks would respond?
What market structure best characterizes the market for masks?
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- Consider the market for Caribbean cruises. In the wake of the COVID-19 pandemic, the cruise companies take the following actions. First, they implement testing and tracing programs to limit the potential of COVID outbreaks on ships to occur and to spread. Second, they engage in widespread advertisement of their new and state of the art safety precautions. Using a generic model of supply and demand, show and describe how you would expect these initiatives would affect the market for cruises. Be sure to explain why which curves are shifting, and discuss changes to market equilibrium.It’s increasingly clear that many postings on blogs and product reviews on Web sites are fake or are posted there to manipulate consumers’ opinions. How big a problem is this if consumers increasingly look to consumer-generated product reviews to guide their purchase decisions? What steps, if any, can marketers take to nip this problem in the bud?How would each event affect the market for COVID-19 vaccines? Does the event cause a change in demand or a change in the quantity demanded? Is the change positive or negative? Or does the event cause a change in supply or a change in the quantity supplied? Is the change positive or negative? Explain the mechanism for the change and what happens to equilibrium price and quantity. a) The vaccine is approved for children under the age of 12. b) The U.S. government provides a subsidy that allows the price of the vaccine to be $0 for everyone. c) Several vaccines pass Phase 3 (large-scale efficacy tests) and are approved by the FDA for full use. d) A truck carrying the Pfizer vaccine has a malfunction and the refrigeration requirements aren’t met, so all the doses go bad. e) School districts and health care facilities add a requirement for getting the vaccine for all employees.
- The computer market in recent years has seen many more computers sell at much lower prices. What determinant(s) for demand or supply are/is most likely to explain this outcome?Consider that the retail market for sanitizing wipes in a small locale is described by the follow demand and supply equations respectively: P = 8.40 - 0.02Q and P = 6.60 + 0.01Q where P is the price in dollars and Q is the quantity measured in thousands per week. The market is currently in equilibrium. (Question 8 of 8) Now consider than an unexpected viral outbreak led to consumers ensuring that much more surfaces (counter tops, door handles, etc.) are clean and sanitized. At the same time, the government's demand for sanitizing wipes at various public institutions (hospitals, schools, etc.) has impacted the supply of sanitizing wipes in the retail market. Although the government is neither a buyer nor seller in the retail market, their requests for sanitizing wipes does affect how many sanitizing wipes firms are able to supply in the retail market. The market for sanitizing wipes adjusts afterwards and the market is in equilibrium. Suppose that after the market for sanitizing wipes…Consider two types of cars: 1) Performance cars, which emphasize good performance (good mileage, towing capacity, horsepower, etc). 2) Luxury cars, which emphasize good looks Let's say that with the higher gas prices Americans care less about how their cars look and more about how they perform. We'd therefore expect to see in the market for performance cars and in the market for luxury cars. demand fall; demand rise demand rise; quantity demanded fall demand rise; demand fall O demand fall; quantity demanded rise
- How can we use the Supply-Demand model to predict what is likely to happen to the price of alcohol in the future ?More than 20 states have laws outlawing price gouging during a state of emergency, which might be declared after a hurricane or an earthquake. These laws prohibit price increases on basic necessities, such as gasoline. Which of the arguments against price ceilings might not be significant during a state of emergency? It might be the case that during an emergency, consumers have little concern over the quality of a good that is available. It might be the case that during an emergency, consumers have little concern over the quantity of a good that is available. It might be the case that during an emergency, consumers have lttle concern over the price of a good that is available It might be the case that during an emergency, consumers have little concern over the location of a good that is available.Individual and market supply Suppose that Charles and Dina are the only suppliers of ice cream cones in a particular market. The following table shows their monthly supply schedules: Price Charles's Quantity Supplied Dina's Quantity Supplied (Dollars per cone) (Cones) (Cones) 1 0 5 2 3 9 3 5 12 4 6 14 5 7 15 On the following graph, plot Charles's supply of ice cream cones using the green points (triangle symbol). Next, plot Dina's supply of ice cream cones using the purple points (diamond symbol). Finally, plot the market supply of ice cream cones using the orange points (square symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. Charles’s SupplyDina’s SupplyMarket Supply048121620246543210PRICE (Dollars per cone)QUANTITY (Cones)
- Suppose the state of Florida responds to the demands of nature lovers and bans all billboards along the roads and highways. What effect would such a ban have on the prices of motels, restaurants and other services previously advertised on billboards? Would such a ban increase the amount of time travelers take to find a place to eat or sleep?Current tuition at Benedict College is around $24, 000 a year. Show what would likely happen to demand for educational services at the school if tuition went up to $40, 000 a year. The Ford F-150 (best selling vehicle in the U.S. for the last three decades) is currently priced at about $40, 000 to $45, 000. Show what would likely happen to the amount of vehicles offered for sale if the vehicle price went up to $52, 000. You have four kids at home and they are somewhat clumsy and spill a lot of milk and other drinks. While at DG you compare some paper towels options. The first option is a roll of towels that contains 43 sq. ft. of paper at a price of $1.75. The second option contains 67.3 sq. ft. of paper at $2.00. Which is the better choice? One of the problems with K-12 education in the U. S. is that there are not enough men (especially men of color) within the classrooms. The rational is that the salaries are too low. Show what…The following relations describe monthly demand and supply for a computer support service to small businesses: Qd=3000-10P Qs=-1000+10P whrer Q is the number of businesses that need services and P is the monthly fee, in dollars. a. at what average monthly fee would demand equal zero? b. at what average monthly fee would supply equal zero? c. plot the supply and demand curves. d. what is the equilibrium price/output level? e. Suppose demand increases and leads to a new demand curve: Qd = 3500 - 10P f. Suppose new suppliers enter the market due to the increase in demand so the new suply curve is Q=-500+10P. What are the new equilibrium price and equilibrium quantity? g. Show changes on the graph.