ECO101 - Unit 1 test

Pharmaceutical companies have uncovered new scientific data that assists them in producing heart medicine more easily, thus making it cheaper for the consumer. (Heart medicine is market) Step 1. Draw demand and supply curves showing the market before the economic change took place. Using this diagram, find the initial equilibrium values for price and quantity.Step 2. Decide whether the economic change being analyzed affects demand or supply. In other words, does the event refer to something in the list of demand shift variables or supply shift variables? Step 3. Determine whether the effect on demand or supply causes the curve to shift to the right or to the left, and sketch the new demand or supply curve on the diagram. In other words, does the event increase or decrease the amount consumers want to buy or the amount producers want to sell? Step 4. Identify the new equilibrium, and then compare the original equilibrium price and quantity to the new equilibrium price and quantity. Draw…

Question 1 (a) Assume that the markets for sugar cane, rum and whiskey are initially in equilibrium (i.e., supply equals demand in each case). Assume further that a good harvest impacts the world’s sugar cane crop. Sugar cane is a principal ingredient in rum, but it is not an ingredient in whiskey. Rum and whiskey are substitutes in consumption.(ii) Discuss the effect on the markets for each of the three products if the government implements a price restriction in the sugar cane market with the aim of protecting the farmers. How will this impact the revenues for sugar growers, rum producers and whiskey producers?

(a) Assume that the markets for sugar cane, rum, and whiskey are initially in equilibrium (i.e., supply equals demand in each case). Assume further that a good harvest impacts the world’s sugar cane crop. Sugar cane is a principal ingredient in rum, but it is not an ingredient in whiskey. Rum and whiskey are substitutes for consumption.   (i) Discuss the impact of the good harvest on each of the three markets.      (ii) Discuss the effect on the markets for each of the three products if the government implements a price restriction in the sugar cane market with the aim of protecting the farmers. How will this impact the revenues for sugar growers, rum producers, and whiskey producers?      (b) Identify a newspaper article that illustrates a market failure in your assigned Caribbean country. Ensure that you provide a screenshot of the article in your submission. NOTE: Only the following market failures should be examined: public good, asymmetric information, positive or negative…

(a) Assume that the markets for sugar cane, rum and whiskey are initially in equilibrium (i.e., supply equals demand in each case). Assume further that a good harvest impacts the world’s sugar cane crop. Sugar cane is a principal ingredient in rum, but it is not an ingredient in whiskey. Rum and whiskey are substitutes in consumption.(i) Discuss the impact of the good harvest on each of the three markets.(ii) Discuss the effect on the markets for each of the three products if thegovernment implements a price restriction in the sugar cane market with the aim of protecting the farmers. How will this impact the revenues for sugar growers,rum producers and whiskey producers?  (b) Identify a newspaper article that illustrates a market failure in Barbados. NOTE: Only the following market failures should be examined: public good,asymmetric information, positive or negative externality.(i) Provide a brief summary of the main points in the article. (Maximum 30 words)(ii)Identify the type of…

MicroEconomics Practice: Ethanol is a motor fuel manufactured from corn. Ethanol and Gasoline are both used independently to power the engines of automobiles. Suppose bad weather negatively affects Corn production. Explain the effect of the bad weather on demand and supply of Corn. What is the effect on equilibrium price and Quantity. Explain the effect of changes in market for Corn on demand and supply of Ethanol. What is the effect on equilibrium price and Quantity. Explain the effect of changes in market for Ethanol on demand and supply of Gasoline. What is the effect on equilibrium price and Quantity.

Note: don't use chat bot

Discussion 1-3: Essential Concept - Supply & Demand Using your understanding of supply, demand and price, answer the following questions.  Try to be brief with each.   1. Why has college become so expensive? (Hint: tell me about WHAT has driven up the demand for college)   2. Will we run out of oil one day? (Hint: tell me about what declining supply of oil does to price and then, what that price does to the demand for oil)   3. Why is there traffic? (Hint: tell me about what the price to drive "freeways" does to the demand to drive on them OR what the price to build "freeways" does to the supply of "freeways" OR what the supply of homes near one's job does to the demand to use "freeways")   4. What happens to the wage of low-skilled workers when you add more low-skilled workers to the labor market? (Hint: tell me about what an increase in supply does to price)

Graphically show how each of the following shifts the supply curve. Also identify which factor of supply is being affected in each case. What happens to the supply of Spices if the US government withdraws an embargo on imported Spices from Iran?

Question#3Assuming hypothetical equilibrium in Demand/Supply Model of Apples, illustrate impact of following events: C) The government announces increase in Wages of workers. D) The price of petrol in the market comes down. E) Consumer income falls during government imposed Lockdowns due to health concerns.

Given the products and conditions below, indicate how the events affect the demand, supply, equilibrium price and quantity of the goods. (a)   Videotapes specifically .  The price of DVDs and DVD players decreases.  New technology makes videotapes easier to produce.  The shift in demand is greater than shift in supply.   (b) Tomatoes.  FDA publicly announces that eating tomatoes and tomato-based products can significantly reduce one’s risk of developing cancer.  An unexpected freeze late in the tomato season destroys a significant portion of this year’s crop.  The shift in supply is greater than shift in demand.

Graphically show how each of the following shifts the supply curve. Also identify which factor of supply is being affected in each case.   d) What happens to the supply of Spices if the US government withdraws an embargo on imported Spices from Iran? e) Wheat and Corn are substitutes in production. If the price of Corn increases, what happens to the supply of Wheat? f) What happens to the supply of Chocolates when the number of sellers decrease?

QUESTIONS: Scenario 1: As part of an international trade agreement, the Oman government reduces the tax on imported coffee. a. Will this affect the supply or the demand for coffee? Why? b. Which determinant of demand or supply is being affected? Explain. c. Show graphically the effect of changes in demand or supply. d. How will this change the equilibrium price and quantity of coffee? Explain your reasoning. Scenario 2: The Ministry of health publishes a study finding that coffee drinking reduces the probability of getting cancer. a. How do you imagine this will affect the market for coffee? Why? b. Which determinant of demand or supply is being affected? Explain. c. Show graphically the changes in demand or supply. d. Will this change the equilibrium price and quantity of coffee? Explain your reasoning.

Supply and Demand — End of Chapter Problem Will Shakespeare is a struggling playwright in sixteenth-century London. As the price he receives for writing a play increases, he is willing to write more plays. Given the following situation, shift the demand and/or supply curve(s) and move the equilibrium point to its new position. Event: The bubonic plague, a deadly infectious disease, breaks out in London. Assume Will survives unscathed. Price of a play Market for Shakespeare's plays E Quantity of plays S D

In the following graphs, label the original equilibrium as Eo, Po, and Qo. Label the new equilibrium as E1, P1, and Q1. Draw arrows along axes to indicate directions of change. Explain as much as necessary in words. No numbers are required here. 1. Show on 5 separate graphs the effect of each of the following events on the equilibrium price and quantity of bananas in the United States: a. a civil war/revolution in El Salvador b. an increase in the demand for banana yogurt c. a decrease in the prices of other fruits d. increased shipping costs due to increased energy costs e. a U.S. tariff on banana imports from Nicaragua.

Assignment 1   Draw a demand curve for economics classes at HCCC, showing the trade-off between price and quantity. Now draw another demand curve to the right of the original (i.e. showing an increase in demand). Give three reasons that demand for economics classes might shift to the right like this.   The following table contains information about the wheat market:   Price per Bushel (dollars) Quantity Demanded (bushels) Quantity Supplied (bushels) $2 40,000         0   4 34,000   4,000   6 28,000   8,000   8 24,000 16,000 10 20,000 20,000 12 18,000 28,000 14 12,000 36,000 16   6,000 40,000

Activity 2 Direction: Using the graph below as basis answer the following questions in the space provided. Equilibrium for Bagels 1. What is the equilibrium price 4.50 - and quantity? 4.00 - 2. If price increases to 3, how many bagels are demanded per month? 3.50 - 3.00 At price 3, what is the situation of the economy for bagels industry? 3. 2.50 2.00- If the economy is experiencing a shortage in bagels what can suppliers do to the price to bring it back to equilibrium? 4. 1.50 - 1.00- 0.50 - At price 1 and with quantity demanded of 14 and quantity supplied of 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 2, what is the situation of the economy? 5. 0.00 Quantity (thousands of dozens per month) Price per dozen bagels D.