The question requires us to determine the surplus or shortage exists at the equilibrium price and also, determine the impact on the equilibrium price.

Question

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Answer 1

Question

Chapter 7, Problem 1CYU

To determine

The question requires us to determine the surplus or shortage exists at the equilibrium price and also, determine the impact on the equilibrium price.

Expert Solution & Answer

Explanation of Solution

The given options are:

A bumper crop of wine grapes generates a surplus in the market because the supply of wine grapes will be more than the demand for the grapes. In case of surplus, the market price remains above the equilibrium price. The price of a product tends to fall when the market price is above the equilibrium price. So, the equilibrium price will fall when a surplus exists in the market.
Due to the hurricane demand for hotel rooms fall while supply remains high and thus resulting in a surplus of rooms in the market. In case of surplus, the market price remains above the equilibrium price. The price of a product tends to fall when the market price is above the equilibrium price. So, the equilibrium price will fall when a surplus exists in the market.
Due to heavy snowfall, the demand for snow-blowers rises at the local shop and generates a shortage of snow-blowers in the market. In case of shortage, the market price remains below the equilibrium price. The price of a product tends to increase when the market price is below the equilibrium price. So, the equilibrium price will increase when a shortage exists in the market.

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Answer 2

Question

Chapter 7, Problem 1CYU

To determine

The question requires us to determine the surplus or shortage exists at the equilibrium price and also, determine the impact on the equilibrium price.

Expert Solution & Answer

Explanation of Solution

The given options are:

A bumper crop of wine grapes generates a surplus in the market because the supply of wine grapes will be more than the demand for the grapes. In case of surplus, the market price remains above the equilibrium price. The price of a product tends to fall when the market price is above the equilibrium price. So, the equilibrium price will fall when a surplus exists in the market.
Due to the hurricane demand for hotel rooms fall while supply remains high and thus resulting in a surplus of rooms in the market. In case of surplus, the market price remains above the equilibrium price. The price of a product tends to fall when the market price is above the equilibrium price. So, the equilibrium price will fall when a surplus exists in the market.
Due to heavy snowfall, the demand for snow-blowers rises at the local shop and generates a shortage of snow-blowers in the market. In case of shortage, the market price remains below the equilibrium price. The price of a product tends to increase when the market price is below the equilibrium price. So, the equilibrium price will increase when a shortage exists in the market.

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Answer 3

Question

Chapter 7, Problem 1CYU

To determine

The question requires us to determine the surplus or shortage exists at the equilibrium price and also, determine the impact on the equilibrium price.

Expert Solution & Answer

Explanation of Solution

The given options are:

A bumper crop of wine grapes generates a surplus in the market because the supply of wine grapes will be more than the demand for the grapes. In case of surplus, the market price remains above the equilibrium price. The price of a product tends to fall when the market price is above the equilibrium price. So, the equilibrium price will fall when a surplus exists in the market.
Due to the hurricane demand for hotel rooms fall while supply remains high and thus resulting in a surplus of rooms in the market. In case of surplus, the market price remains above the equilibrium price. The price of a product tends to fall when the market price is above the equilibrium price. So, the equilibrium price will fall when a surplus exists in the market.
Due to heavy snowfall, the demand for snow-blowers rises at the local shop and generates a shortage of snow-blowers in the market. In case of shortage, the market price remains below the equilibrium price. The price of a product tends to increase when the market price is below the equilibrium price. So, the equilibrium price will increase when a shortage exists in the market.

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Answer 4

Question

Chapter 7, Problem 1CYU

To determine

The question requires us to determine the surplus or shortage exists at the equilibrium price and also, determine the impact on the equilibrium price.

Expert Solution & Answer

Explanation of Solution

The given options are:

A bumper crop of wine grapes generates a surplus in the market because the supply of wine grapes will be more than the demand for the grapes. In case of surplus, the market price remains above the equilibrium price. The price of a product tends to fall when the market price is above the equilibrium price. So, the equilibrium price will fall when a surplus exists in the market.
Due to the hurricane demand for hotel rooms fall while supply remains high and thus resulting in a surplus of rooms in the market. In case of surplus, the market price remains above the equilibrium price. The price of a product tends to fall when the market price is above the equilibrium price. So, the equilibrium price will fall when a surplus exists in the market.
Due to heavy snowfall, the demand for snow-blowers rises at the local shop and generates a shortage of snow-blowers in the market. In case of shortage, the market price remains below the equilibrium price. The price of a product tends to increase when the market price is below the equilibrium price. So, the equilibrium price will increase when a shortage exists in the market.

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Answer 5

Chapter 7, Problem 1CYU

To determine

The question requires us to determine the surplus or shortage exists at the equilibrium price and also, determine the impact on the equilibrium price.

Expert Solution & Answer

Explanation of Solution

The given options are:

A bumper crop of wine grapes generates a surplus in the market because the supply of wine grapes will be more than the demand for the grapes. In case of surplus, the market price remains above the equilibrium price. The price of a product tends to fall when the market price is above the equilibrium price. So, the equilibrium price will fall when a surplus exists in the market.
Due to the hurricane demand for hotel rooms fall while supply remains high and thus resulting in a surplus of rooms in the market. In case of surplus, the market price remains above the equilibrium price. The price of a product tends to fall when the market price is above the equilibrium price. So, the equilibrium price will fall when a surplus exists in the market.
Due to heavy snowfall, the demand for snow-blowers rises at the local shop and generates a shortage of snow-blowers in the market. In case of shortage, the market price remains below the equilibrium price. The price of a product tends to increase when the market price is below the equilibrium price. So, the equilibrium price will increase when a shortage exists in the market.

Answer 6

Chapter 7, Problem 1CYU

To determine

The question requires us to determine the surplus or shortage exists at the equilibrium price and also, determine the impact on the equilibrium price.

Expert Solution & Answer

Explanation of Solution

The given options are:

A bumper crop of wine grapes generates a surplus in the market because the supply of wine grapes will be more than the demand for the grapes. In case of surplus, the market price remains above the equilibrium price. The price of a product tends to fall when the market price is above the equilibrium price. So, the equilibrium price will fall when a surplus exists in the market.
Due to the hurricane demand for hotel rooms fall while supply remains high and thus resulting in a surplus of rooms in the market. In case of surplus, the market price remains above the equilibrium price. The price of a product tends to fall when the market price is above the equilibrium price. So, the equilibrium price will fall when a surplus exists in the market.
Due to heavy snowfall, the demand for snow-blowers rises at the local shop and generates a shortage of snow-blowers in the market. In case of shortage, the market price remains below the equilibrium price. The price of a product tends to increase when the market price is below the equilibrium price. So, the equilibrium price will increase when a shortage exists in the market.

Answer 7

Chapter 7, Problem 1CYU

To determine

The question requires us to determine the surplus or shortage exists at the equilibrium price and also, determine the impact on the equilibrium price.

Answer 8

Expert Solution & Answer

Explanation of Solution

The given options are:

A bumper crop of wine grapes generates a surplus in the market because the supply of wine grapes will be more than the demand for the grapes. In case of surplus, the market price remains above the equilibrium price. The price of a product tends to fall when the market price is above the equilibrium price. So, the equilibrium price will fall when a surplus exists in the market.
Due to the hurricane demand for hotel rooms fall while supply remains high and thus resulting in a surplus of rooms in the market. In case of surplus, the market price remains above the equilibrium price. The price of a product tends to fall when the market price is above the equilibrium price. So, the equilibrium price will fall when a surplus exists in the market.
Due to heavy snowfall, the demand for snow-blowers rises at the local shop and generates a shortage of snow-blowers in the market. In case of shortage, the market price remains below the equilibrium price. The price of a product tends to increase when the market price is below the equilibrium price. So, the equilibrium price will increase when a shortage exists in the market.