Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 4, Problem 15P
To determine
(a)
Effect on the supply of corn if the
To determine
(b)
Effect on the supply of wheat if the price of corn rose.
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PLEASE MAKE A SUPPLY AND DEMAND GRAPH BASED ON THIS EXPLAINATION
The high demand for onions in the Philippines combined with low supply has led to an increase in prices. The average monthly demand for onions in the country is around 17,000 metric tons but the current supply is not enough to meet the demand. This has resulted in a shift in the demand curve to the right and the supply curve to the left, causing the market equilibrium to move from point E to point F, resulting in an increase in both price and quantity.
Reason of the shift: The price increase of onions in the Philippines can be attributed to several factors, including global inflation, failure of the agriculture department to make accurate supply projections, possible internal price manipulation, and a shortage of supply due to smuggling.
Suppose that there are two companies that produce mobile phones: Brand A and Brand B.
Explain how each of the following events will affect the market for Brand A phones by
using supply and demand diagrams (mention the changes in equilibrium price and quantity):
a) Price of Brand B phones increased.
b) Brand A's factory's production capacity dropped because of a shortage in raw
materials supplies.
c) Brand A has developed a new technology that allows to assemble the phone's
components in a cheaper way.
Homework (Ch 07)
The following graph shows the supply curve for a group of sellers in the U.S. market for smartphones (orange line). Each seller has only one
smartphone to sell. The market price of a smartphone is shown by the black horizontal line at $105.
Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Jacques, green (triangle symbols) for Kyoko,
purple (diamond symbols) for Musashi, tan (dash symbols) for Rina, and orange (square symbols) for Sean. (Note: The name labels are to the right of
the corresponding segment on the supply curve.)
Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a smartphone at a market price of $105.
(Note: If a person will not sell a smartphone at the market price, indicate this by leaving his or her rectangle in its original position on the palette.)
?
240
210
Sean
Jacques
180
150
Kyoko
120
90
Musashi
60
C O
PRICE (Dollars per smartphone)…
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- Suppose that Milwaukee builds a light rail system. Draw a supply and demand graph of the market for used automobiles in Milwaukee on the axis below. Then show which curve shifts on the graph (supply or demand) in response to the light rail system, and explain briefly how the change will affect price and quantity (other things remaining equal). Make sure to label all curves and values in the grapharrow_forwardThe following graph shows the supply curve for sedans in an imaginary market. For simplicity, assume that all sedans are identical and sell for the same price. Two factors that affect the supply of sedans are the level of technical knowledge—in this case, the speed with which manufacturing robots can fasten bolts, or robot speed—and the wage rate that auto manufacturers must pay their employees. Initially, the graph shows the supply curve when robots can fasten 2,500 bolts per hour and autoworkers earn $25 per hour. Suppose that the price of a sedan increases from $21,000 to $26,000. This would cause the quantity supplied of sedans to ________ (options: increase, decrease) , which is reflected on the graph by a ________ (options: shift of, movement along) the supply curve. Suppose the workers' union negotiates a pay raise. This causes a _________ (options: leftward movement along, rightward movement along, leftward shift of, rightward shift of) the supply curve because the pay raise…arrow_forwardThe following graph shows the supply curve for sedans in an imaginary market. For simplicity, assume that all sedans are identical and sell for the same price. Two factors that affect the supply of sedans are the level of technical knowledge in this case, the speed with which manufacturing robots can fasten bolts, or robot speed-and the wage rate that auto manufacturers must pay their employees. Initially, the graph shows the supply curve when robots can fasten 2,500 bolts per hour and autoworkers earn $25 per hour. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Thousands of dollars) 50 40 30 20 O Supply 0 100 200 300 400 500 600 700 800 900 QUANTITY (Sedans per month) Graph Input Tool Supply for Sedans Price of a Sedan (Thousands of dollars) Quantity Supplied (Sedans…arrow_forward
- The following graph plots a supply curve (orange line) for several sellers in the market for motor scooters in State College, a university town in Pennsylvania. Each seller has a single motor scooter for sale. The market price of motor scooters is given by the horizontal black line at $70. Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Shen, green (triangle symbols) for Valerie, purple (diamond symbols) for Antonio, tan (dash symbols) for Caroline, and orange (square symbols) for Dmitri. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at a market price of $70. (Note: If a person will not sell a motor scooter at the market price, indicate this by leaving their rectangle in its original position on the palette.) PRICE (Dollars per motor scooter) 160 140 120 100 80 60…arrow_forwardThe article discussed the potential of Iraq as a major oil supplier. Draw a hypothetical demand and supply of Iraq petroleum before and after all their oil refinery projects were established. Thus you will depict two equilibrium prices. Explain the movement of prices in the market by identifying the factors that may cause these shifts.arrow_forwardSuppose that Paolo and Sharon are the only suppliers of collectible action figures in a particular market. The following table shows their annual supply schedules: Price Paolo's Quantity Supplied Sharon's Quantity Supplied (Dollars per action figure) (Action figures) (Action figures) 10 A-Z 4 8. 18 6. 12 24 8. 14 28 10 16 30 On the following graph, plot Paolo's supply of collectible action figures using the green points (triange symbol). Next, plot Sharon's supply of collectible action figures using the purple points (diamond symbol). Finally, plot the market supply of collectible action figures using the orange points (square symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. 12 Paolo's Supply 10 Sharon's Supply MacBook Air F12 F11 F10 F9 FB F7 F6 吕0 F5 O00 F4 F3 * delete &arrow_forward
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