Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 8SPA
To determine
The effect of given events on the market for gasoline.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
People come to expect that the price of a gallon of gasoline will rise next week. As a result,A) next week's supply of gasoline decreases.B) the price of a gallon of gasoline falls today.C) today's supply of gasoline increases.D) today's demand for gasoline increases.
In August 2005, Hurricane Katrina damaged or destroyed oil platforms in the Gulf of Mexico, refineries along the Gulf coast, and the pipeline infrastructure that transports oil and gas to customers across the eastern United States. The winter of 2006 was unusually cold in many parts of the country. How did these events affect the market for natural gas? Use graphs to explain your points.
Scenario 2: The Ministry of health publishes a study finding that coffee drinking reduces the probability of getting cancer.
How do you imagine this will affect the market for coffee? Why?
Which determinant of demand or supply is being affected? Explain.
Show graphically the changes in demand or supply.
Will this change the equilibrium price and quantity of coffee? Explain your reasoning.
Chapter 3 Solutions
Macroeconomics
Ch. 3.1 - Prob. 1RQCh. 3.1 - Prob. 2RQCh. 3.1 - Prob. 3RQCh. 3.2 - Prob. 1RQCh. 3.2 - Prob. 2RQCh. 3.2 - Prob. 3RQCh. 3.2 - Prob. 4RQCh. 3.2 - Prob. 5RQCh. 3.3 - Prob. 1RQCh. 3.3 - Prob. 2RQ
Ch. 3.3 - Prob. 3RQCh. 3.3 - Prob. 4RQCh. 3.3 - Prob. 5RQCh. 3.4 - Prob. 1RQCh. 3.4 - Prob. 2RQCh. 3.4 - Prob. 3RQCh. 3.4 - Prob. 4RQCh. 3.4 - Prob. 5RQCh. 3.5 - Prob. 1RQCh. 3.5 - Prob. 2RQCh. 3.5 - Prob. 3RQCh. 3 - Prob. 1SPACh. 3 - Prob. 2SPACh. 3 - Prob. 3SPACh. 3 - Prob. 4SPACh. 3 - Prob. 5SPACh. 3 - Prob. 6SPACh. 3 - Prob. 7SPACh. 3 - Prob. 8SPACh. 3 - Prob. 9SPACh. 3 - Prob. 10SPACh. 3 - Prob. 11APACh. 3 - Prob. 12APACh. 3 - Prob. 13APACh. 3 - Prob. 14APACh. 3 - Prob. 15APACh. 3 - Prob. 16APACh. 3 - Prob. 17APACh. 3 - Prob. 18APACh. 3 - Prob. 19APACh. 3 - Prob. 20APACh. 3 - Prob. 21APACh. 3 - Prob. 22APACh. 3 - Prob. 23APACh. 3 - Prob. 24APACh. 3 - Prob. 25APACh. 3 - Prob. 26APACh. 3 - Prob. 27APA
Knowledge Booster
Similar questions
- use verbal and graphical analysis to demonstrate the outcome. What will happen in the market for corn if a new crop rotation technique is discovered that allows corn to be grown more easily and the price of green beans, a substitute, decreases?arrow_forwardThe price of wheat increases. What happens in the market for wheat?arrow_forwardConsider the market for minivans. Indicate the impact if any on demand, supply, price and quantity: (a) People decide to have more children. (b) A strike by steelworkers raises steel prices. (c) Engineers develop new automated machinery for the production of minivans. (d) The price of station wagons rises. (e) A stock-market crash lowers people’s wealth acarrow_forward
- Assignment Overview In this assignment, you will examine the effects of changes in demand and supply on the equilibrium price and quantity of a market. Step 1 Analyze the effect of each scenario on the price of khaki pants. Consider the following scenarios. Think about how each scenario would affect the price of khaki pants. A new technology reduces the time it takes to make a pair of khaki pants. The price of the cloth used to make khaki pants falls. The wage rate paid to garment workers increases. The price of jeans increases. People's incomes increase. Step 2 Draw a demand-supply graph and label the axes with the price and quantity of khaki pants. Create one graph that shows each of the demand-supply curves for the five scenarios listed in Step 1. Use (free) online graphing software such as "Padowan" to create your graph. Follow the instructions on the website to learn how to create and manipulate the graph. Use five different colors to represent each of the five scenarios.…arrow_forwardA decrease in supply causes the price of coffee to fallarrow_forwardCarefully explain whats happening to the market for a regular cup of coffee. Indicate the impact if any on demand, supply, price and quantity: Droughts affecting the major producers of coffee beans.arrow_forward
- Given the products and conditions below, indicate how the events affect the demand, supply, equilibrium price and quantity of the goods. (a) Videotapes. The price of DVDs and DVD players decreases. New technology makes videotapes easier to produce. The shift in demand is greater than shift in supply. (b) Roses. The Valentine’s Day season has just begun for the floral industry. A new pesticide decreases the number of flowers affected by pests. The shift in supply is greater than the shift in demand. (c) Tomatoes. FDA publicly announces that eating tomatoes and tomato-based products can significantly reduce one’s risk of developing cancer. An unexpected freeze late in the tomato season destroys a significant portion of this year’s crop. The shift in supply is greater than shift in demand. (d) Healthcare. Highly publicized malpractice cases decrease consumer confidence in healthcare providers. Malpractice insurance premiums paid by doctors increase. The shift in…arrow_forwardDraw a graph to analyze the market for agricultural products (food). Label your price and quantity axes properly. In your graph, draw a supply curve for agricultural products (food) that obeys the law of supply. Label (S). In the same graph, draw a demand curve for food that obeys the law of demand. Label (D). Identify the market equilibrium point in your graph and label (E). Also, label the equilibrium price (PE) and the Equilibrium quantity (QE): 1. Using supply/demand analysis, explain why food prices declined in the United States in the 1920s. Use your above graph to illustrate the change in the market equilibrium price. Clearly label the original and new equilibrium price and explain your graphical analysis in words.arrow_forwardDraw a graph to analyze the market for agricultural products (food). Label your price and quantity axes properly. In your graph, draw a supply curve for agricultural products (food) that obeys the law of supply. Label (S). In the same graph, draw a demand curve for food that obeys the law of demand. Label (D). Identify the market equilibrium point in your graph and label (E). Also, label the equilibrium price (PE) and the Equilibrium quantity (QE): 1. In response to farmers' outcries about declining food prices, the federal government instituted a farm price support program. Use the graph above to illustrate why farm price supports created surpluses of many agricultural products. Explain your graph in words and clearly identify the surplus in your graph.arrow_forward
- Draw a graph to analyze the market for agricultural products (food). Label your price and quantity axes properly. In your graph, draw a supply curve for agricultural products (food) that obeys the law of supply. Label (S). In the same graph, draw a demand curve for food that obeys the law of demand. Label (D). Identify the market equilibrium point in your graph and label (E). Also, label the equilibrium price (PE) and the Equilibrium quantity (QE): 1. The federal government instituted acreage restriction programs in an attempt to eliminate the surpluses resulting from the price support program. Using the graph above, explain and illustrate how acreage restrictions, if effective might reduce or eliminate food surpluses. Label and explain clearly.arrow_forwardWhich of the following would lead to an increase in the price of leather? 1. Harsher penalties for cattle theft 2. A decrease in the population of Texas leading to lower demand for cowboy boots 3. An increase in the quality of fake leather 4. A decrease in the demand for steakarrow_forwardGiven the products and conditions below, indicate how the events affect the demand, supply, equilibrium price and quantity of the goods. (a) Videotapes specifically . The price of DVDs and DVD players decreases. New technology makes videotapes easier to produce. The shift in demand is greater than shift in supply. (b) Tomatoes. FDA publicly announces that eating tomatoes and tomato-based products can significantly reduce one’s risk of developing cancer. An unexpected freeze late in the tomato season destroys a significant portion of this year’s crop. The shift in supply is greater than shift in demand.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Microeconomics: Principles & PolicyEconomicsISBN:9781337794992Author:William J. Baumol, Alan S. Blinder, John L. SolowPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning