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 1P

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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Question 2i Given the following information QD = 240 – 5P QS = P where QD is the quantity demanded, QS is the quantity supplied and P is the price. Suppose that the government decides to impose a tax of $12 per unit on sellers in this market. Determine: Total surplus after tax ENTER FINAL ANSWER ONLY. NO WORKINGS Answer:

Price ($/cup) 3.5 3 88 2.5 2 1.5 1 0.5 0 10 20 Original Supply New Supply New Demand Original Demand 30 40 50 60 70 80 90 Quantity (cups/hour) The figure above refers to the market for coffee. What might cause shift from the original supply curve to the new supply curve? Check all that apply. An increase in the price of tea (a substitute for coffee). An expectation that coffee prices will fall in the future. A decrease in the price of coffee beans. A storm in that wipes out a large part of the coffee crop. A new technology that reduces the cost of making coffee.

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.…

Answer 2

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Chapter 4, Problem 1P

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

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Chapter 4, Problem 1P

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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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

100%

Chapter 4, Problem 1P

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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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

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Answer 6

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Answer 7

Chapter 4, Problem 1P

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 1P

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 1P

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.