Effect on the demand and supply curve. Concept Introduction: Demand curve shows all the possible combinations of price and quantity demanded of the good at a given time period. Supply curve shows all the possible combinations of price and quantity supplied of the good at a given time period.

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Answer 1

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Chapter 4, Problem 1.1PA

To determine

Effect on the demand and supply curve.

Concept Introduction:

Demand curve shows all the possible combinations of price and quantity demanded of the good at a given time period.

Supply curve shows all the possible combinations of price and quantity supplied of the good at a given time period.

Expert Solution & Answer

Explanation of Solution

a. Due to the new cure of lung cancer, the smoker will demand more cigarettes because there is a cure of the lung cancer now. This will shift the demand curve to the right.

b. Due to the increase in the price of cigars, the demand curve of the cigarettes will shift to the right because cigars are the substitute of the cigarettes.

c. Due to the increase in the wage, the demand curve of the cigarettes will shift to the right because people now have more money to spend.

d. Due to the discovery of the new fertilizer, the supply curve of the cigarettes will shift to the right because of the increase in the productivity.

e. Due to the increase in the price of matches or lighter, the demand curve will shift to the left because matches or lighter and cigarettes are complementary goods.

f. Due to the new laws which restricts the smoking in public places, the demand curve of the cigarettes will shift to the left because everybody has to respect the law.

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UGD KCQ 2: Microeconomic Essentials (page 11 of 20) - Google Chrome mancosaconnect.ac.za/mod/quiz/attempt.php?attempt=1958913&cmid=436375&page=10 MANCOSA Microeconomic Essentials Jan25 Y1 S1 Back Refer to the diagram below to answer the question that follows: Price PH P1 D₁ ㅁ X Quiz navigation 3 4 5 6 Time left 0:58:34 1 2 Question 11 7 8 Not yet answered Marked out of 1.00 13 33 14 S₁ Flag question Q Q1 Quantity Which of the following may result in a shift of the supply curve from S to S1? OA. An increase in price of the good. B. An increase in wages. O C. A decrease in price of the good. O D. An improvement in the technique of production. https://mancosaconnect.ac.za/mod/quiz/attempt.php?attempt=1958913&cmid=436375&page=10#question-2064270-11 19 20 6 10 10 11 12 15 Question 11- Not yet answered Finish attempt... 7:31 PM

Euros per U.S. Doler Consider the model below, showing the supply and demand curves for the exchange market of U.S. Dollars and Euros. If the inflation rate in the U.S. increases (and in the European Union stays the same), how will that change the original equilibrium shown in the graph? 1.10- 1.00- 0.90 0.80- 0.70 0.60 0.50- 0.40- 0.30 0.20 E 4.7 48 49 50 51 52 53 54 55 56 Quantity of U.S. Dollars traded for Euros (trillionsday) O It will decrease the demand for Dollars and increase the supply, so the exchange rate decreases and the impact on the quantity traded is unknown. O It will decrease the demand for Dollars and increase the supply, so the exchange rate decreases, and the quantity traded increases. It will increase the demand for Dollars and decrease the supply, so the exchange rate decreases, and the quantity traded increases. It will increase the demand for Dollars and decrease the supply, so the exchange rate increases and the impact on the quantity traded is unknown

Answer 2

Question

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Chapter 4, Problem 1.1PA

To determine

Effect on the demand and supply curve.

Concept Introduction:

Demand curve shows all the possible combinations of price and quantity demanded of the good at a given time period.

Supply curve shows all the possible combinations of price and quantity supplied of the good at a given time period.

Expert Solution & Answer

Explanation of Solution

a. Due to the new cure of lung cancer, the smoker will demand more cigarettes because there is a cure of the lung cancer now. This will shift the demand curve to the right.

b. Due to the increase in the price of cigars, the demand curve of the cigarettes will shift to the right because cigars are the substitute of the cigarettes.

c. Due to the increase in the wage, the demand curve of the cigarettes will shift to the right because people now have more money to spend.

d. Due to the discovery of the new fertilizer, the supply curve of the cigarettes will shift to the right because of the increase in the productivity.

e. Due to the increase in the price of matches or lighter, the demand curve will shift to the left because matches or lighter and cigarettes are complementary goods.

f. Due to the new laws which restricts the smoking in public places, the demand curve of the cigarettes will shift to the left because everybody has to respect the law.

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Answer 3

Question

100%

Chapter 4, Problem 1.1PA

To determine

Effect on the demand and supply curve.

Concept Introduction:

Demand curve shows all the possible combinations of price and quantity demanded of the good at a given time period.

Supply curve shows all the possible combinations of price and quantity supplied of the good at a given time period.

Expert Solution & Answer

Explanation of Solution

a. Due to the new cure of lung cancer, the smoker will demand more cigarettes because there is a cure of the lung cancer now. This will shift the demand curve to the right.

b. Due to the increase in the price of cigars, the demand curve of the cigarettes will shift to the right because cigars are the substitute of the cigarettes.

c. Due to the increase in the wage, the demand curve of the cigarettes will shift to the right because people now have more money to spend.

d. Due to the discovery of the new fertilizer, the supply curve of the cigarettes will shift to the right because of the increase in the productivity.

e. Due to the increase in the price of matches or lighter, the demand curve will shift to the left because matches or lighter and cigarettes are complementary goods.

f. Due to the new laws which restricts the smoking in public places, the demand curve of the cigarettes will shift to the left because everybody has to respect the law.

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Answer 4

Question

100%

Chapter 4, Problem 1.1PA

To determine

Effect on the demand and supply curve.

Concept Introduction:

Demand curve shows all the possible combinations of price and quantity demanded of the good at a given time period.

Supply curve shows all the possible combinations of price and quantity supplied of the good at a given time period.

Expert Solution & Answer

Explanation of Solution

a. Due to the new cure of lung cancer, the smoker will demand more cigarettes because there is a cure of the lung cancer now. This will shift the demand curve to the right.

b. Due to the increase in the price of cigars, the demand curve of the cigarettes will shift to the right because cigars are the substitute of the cigarettes.

c. Due to the increase in the wage, the demand curve of the cigarettes will shift to the right because people now have more money to spend.

d. Due to the discovery of the new fertilizer, the supply curve of the cigarettes will shift to the right because of the increase in the productivity.

e. Due to the increase in the price of matches or lighter, the demand curve will shift to the left because matches or lighter and cigarettes are complementary goods.

f. Due to the new laws which restricts the smoking in public places, the demand curve of the cigarettes will shift to the left because everybody has to respect the law.

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Answer 5

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Answer 6

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Answer 7

Chapter 4, Problem 1.1PA

To determine

Effect on the demand and supply curve.

Concept Introduction:

Demand curve shows all the possible combinations of price and quantity demanded of the good at a given time period.

Supply curve shows all the possible combinations of price and quantity supplied of the good at a given time period.

Expert Solution & Answer

Explanation of Solution

a. Due to the new cure of lung cancer, the smoker will demand more cigarettes because there is a cure of the lung cancer now. This will shift the demand curve to the right.

b. Due to the increase in the price of cigars, the demand curve of the cigarettes will shift to the right because cigars are the substitute of the cigarettes.

c. Due to the increase in the wage, the demand curve of the cigarettes will shift to the right because people now have more money to spend.

d. Due to the discovery of the new fertilizer, the supply curve of the cigarettes will shift to the right because of the increase in the productivity.

e. Due to the increase in the price of matches or lighter, the demand curve will shift to the left because matches or lighter and cigarettes are complementary goods.

f. Due to the new laws which restricts the smoking in public places, the demand curve of the cigarettes will shift to the left because everybody has to respect the law.

Answer 8

Chapter 4, Problem 1.1PA

To determine

Effect on the demand and supply curve.

Concept Introduction:

Demand curve shows all the possible combinations of price and quantity demanded of the good at a given time period.

Supply curve shows all the possible combinations of price and quantity supplied of the good at a given time period.

Expert Solution & Answer

Explanation of Solution

a. Due to the new cure of lung cancer, the smoker will demand more cigarettes because there is a cure of the lung cancer now. This will shift the demand curve to the right.

b. Due to the increase in the price of cigars, the demand curve of the cigarettes will shift to the right because cigars are the substitute of the cigarettes.

c. Due to the increase in the wage, the demand curve of the cigarettes will shift to the right because people now have more money to spend.

d. Due to the discovery of the new fertilizer, the supply curve of the cigarettes will shift to the right because of the increase in the productivity.

e. Due to the increase in the price of matches or lighter, the demand curve will shift to the left because matches or lighter and cigarettes are complementary goods.

f. Due to the new laws which restricts the smoking in public places, the demand curve of the cigarettes will shift to the left because everybody has to respect the law.

Answer 9

Chapter 4, Problem 1.1PA

To determine

Effect on the demand and supply curve.

Concept Introduction:

Demand curve shows all the possible combinations of price and quantity demanded of the good at a given time period.

Supply curve shows all the possible combinations of price and quantity supplied of the good at a given time period.

Answer 10

Expert Solution & Answer

Explanation of Solution

a. Due to the new cure of lung cancer, the smoker will demand more cigarettes because there is a cure of the lung cancer now. This will shift the demand curve to the right.

b. Due to the increase in the price of cigars, the demand curve of the cigarettes will shift to the right because cigars are the substitute of the cigarettes.

c. Due to the increase in the wage, the demand curve of the cigarettes will shift to the right because people now have more money to spend.

d. Due to the discovery of the new fertilizer, the supply curve of the cigarettes will shift to the right because of the increase in the productivity.

e. Due to the increase in the price of matches or lighter, the demand curve will shift to the left because matches or lighter and cigarettes are complementary goods.

f. Due to the new laws which restricts the smoking in public places, the demand curve of the cigarettes will shift to the left because everybody has to respect the law.