Macroeconomics
Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 1.A, Problem 11RQ
To determine

Shift of a curve.

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A heavy rainstorm damages this year’s crop of peanuts. The price of peanut butter increases. What will happen to the demand of jelly?   Answer the 3 questions below related to this scenario.     Complete sentences are not required. Please number each answer.   1. Will there be an increase or decrease? 2. Which way will the graph shift? 3. What is the determinant?
Jeffrey usually bought 10 kilos of glutinous rice and 5 bars of tablea every month, on a particular month, Jeffrey bought 12 kilos of glutinous rice and 8 bars of tablea determine the relationship of the two goods.
The following graph shows the market for cereal in New York City, where there are over 1,000 stores that sell cereal at any given moment. Suppose the Surgeon General issues a public statement saying that consuming cereal is bad for your health. Show the effect of this change on the market for cereal by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. Supply Demand Supply Demand QUANTITY (Boxes) Now suppose Congress passes a tax cut that increases the income of New York City residents. If cereal is a normal good, this will cause the demand for cereal to PRICE (Dollars per box)
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