Economics

4) For each article describe causes of changed price and the effects of the changed price.

2. Total revenue falls as the price of a good is raised, if the demand for the good is ( )

Refer to Figure 18-4. The shift of the labor demand curve from D1 to D2 could possibly be explained by

|Event |Market affected by event |Shift in supply, demand, or both. |Change in equilibrium |

viii) This may be determinate of the given situation: For example, when gas prices skyrocketed people started looking for alternatives to circumvent the elevate prices. In states like Texas, Utah and Oklahoma, people started to invest in vehicles that used natural gas as an alternative fuel. Because of the cheaper price of natural gas, the demand for these types of vehicles went up, driving up prices for new and used vehicles. Once the price of a gallon of gas under a certain price,

The new audio greeting message affects the demand for greeting cards. The demand for greeting cards decreases because greeting cards and audio greeting cards are substitutes. The demand curve for greeting cards pads shifts leftward, from D0 to D1 in Figure 4.6. Simultaneously the fall in the cost of producing a greeting card affects the supply. The fall in the cost of producing greeting cards increases the supply and the supply curve shifts rightward, from S0 to S1 in Figure 4.6. At the initial price of a greeting card, $5.00 in Figure 4.6, there is a surplus of 60 greeting cards per week. The surplus forces the price lower, so the equilibrium price of a greeting card

2.) Which curve(s) change and based on the lists in the text of what causes demand and supply to shift what are the causes of theses shifts? D1 changed moving leftward indicating a decrease in demand due to a technological change: a technological setback causes a decrease. This causes price to go down as well as the demand is lower.

This causes the price and the quantity move in opposite directions in a supply curve shift. Also, if the quantity supplied decreases at any given price the opposite will happen.

Figure B shows a leftward shift in the supply curve from S1 to S2 for producers who require oats for production. Due to the non-price determinant that caused farmers to acquire less supply, this in-turn results in a smaller supply for the producers. Furthermore, a smaller supply means the prices of oats will rise and the producers will require more money for production. This results in an increase in price from P1 to P2 and a decrease in quantity supplied from Q1 to Q2.

c. Suppose the price is currently $2. Will this price result in a shortage or a surplus? How much is the shortage or

Describe what has occurred to change the demand for, or the supply of, the good or service, and market prices of those products or services

Availability of substitutes: If the price of Coca-Cola was to increase, we can say that a lot of consumers would turn to other kind of soft drinks and that bring a result of the quality demanded of Coca-Cola will decline. But if the price of Coca-Cola falls a lot of consumers will change other soft drinks to Coca-Cola

3) Which of the following will not cause the demand curve for good X to shift?

The equilibrium price as well as quantity in a market will shift if there are changes in market supply together with demand. As an illustration, the diagram below explains

It means that, the quantity of rubber demanded is stable however the quantity of rubber supplied decreased. Hence, with figure b-1, only supply curve shift and demand curve stay the same.