Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter P2, Problem 6KC
To determine
The impact of the increased wage of the grape pickers.
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Condider the market for grapes.an increase in the wage paid to grapes picker will causea.demand curve for grapes to shift to the right,resulting in a high equilibrium price for grapes and a reduction in the quantity consumed.b.demand curve for grapes to shift to the left,resulting in a lower equilibrium price for grapes and a increase in the quantity consumed.c.demand curve for grapes to shift to the left,resulting in a lower equilibrium price for grapes and a decrease in the quantity consumed.d.demand curve for grapes to shift to the left,resulting in a higher equilibrium price for grapes and a increase in the quantity consumed.
Explain the impact of higher corn prices on consumers.
Draw a graph explaining the impact of higher corn prices on consumers. Explain which curve will shift on your graph and the change in price and quantity demanded.
Explain the impact of higher corn prices on producers.
Draw a graph explaining the impact of higher corn prices on producers. Explain which curve will shift on your graph and the change in price and quantity supplied.
What is the new market equilibrium?
The new equilibrium price is
$
enter your response here
a bar and the new equilibrium quantity is
enter your response here
bars a day.
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- Refer to the figure above. Assume the market is originally at point W. Movement to point Y is a combination of: A. an increase in quantity supplied and an increase in demand. B. an increase in supply and an increase in demand. C. an increase in supply and an increase in quantity demanded. D. a decrease in supply and an increase in quantity demanded.arrow_forwardExplain how equilibrium price and equilibrium quantity will change in the following case demand for a commodity increases, the supply remaining the samearrow_forwardSuppose coffee and milk are complements, and the price of coffee decreases. Which of the following WILL occur in the milk market, in the movement from the old equilibrium to the new equilibrium? 1. A decrease in demand. 2. An increase in quantity supplied. 3. A decrease in quantity demanded. 1, 2, and 3. 1 and 3 only. 2 and 3 only. 2 only.arrow_forward
- Consider the market for beer in the diagram below: Price (S) 70 60 50 40 30 20 10 D 100 200 300 400 500 600 700 800 900 1,000 Beer (millions of cases) Suppose demand shifts to the right by 200 million cases of beer. What would be the new equilibrium price and quantity of beer as a result of this increase in demand? $55 and 500 million cases of beer $65 and 500 million cases of beer $55 and 550 million cases of beer $60 and 600 million cases of beerarrow_forwardANSWER ONLY LETTER D ONLY.arrow_forwardIf E were the old equilibrium in the market for wheat in the figure below, and E' the new one, which of the following could have caused the change? E' (E D' D2 Consumer income rose, causing a supply shift. Bad weather caused a supply shift. Supply and demand both shifted. Consumer income rose, causing a demand shift. All of the above are plausible descriptions. а. b. c. d. e.arrow_forward
- One of the following factors that can best explain why there has been a decline in the equilibrium price and the equilibrium quantity of corn:A) an increase in the demand for corn.B) a decrease in the demand for corn.C) a decrease in the supply of corn.D) an increase in the supply of corn.arrow_forwarda. What happens in the market for airline tickets if the price of checked baggage increases, while at the same time the price of fuel increases for the airlines?Instructions: Draw a parallel shift in the demand and supply curves by grabbing, dragging, and then dropping the curves to the new positions.arrow_forwardThe graph shows the demand for and supply of potato chips. Draw a curve that shows the effect of a new dip that increases the quantity of potato chips that people want to buy by 30 million bags per week at each price. Label the curve 1. Draw a curve that shows the effect of a virus that destroys potato crops and decreases the quantity of potato chips produced by 40 million bags a week at each price. Label the curve 2. Draw a point at the new equilibrium price and quantity following both events. How do the equilibrium price and equilibrium quantity change when the increase in demand is greater than the decrease in supply? The equilibrium price and the equilibrium quantity. OA. falls; decreases; OB. rises; decreases; OC. falls; increases; OD. rises; increases; How do the equilibrium price and equilibrium quantity change when the increase in demand is less than the decrease in supply? The equilibrium price and the equilibrium quantity 115 105- 95- 85- 75- 65- 55- Price (cents per bag) Sb…arrow_forward
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