Chapter 3 2. Draw graphs to illustrate the difference between a decrease in the quantity demanded and a decrease in demand for Mickey Mantle baseball cards. Give a possible reason for change in each graph.
Decrease in the quantity demand of Mickey Mantle Baseball cards.
The reason is that the price increase. Decrease in demand for Mickey Mantle Baseball cards. The reason may be taste and preferences. 4. Draw graphs to illustrate the difference between a decrease in quantity supplied and a decrease in supply for condominiums. Give a possible reason for change in each graph.
Decrease in quantity supplied fir condominiums.
If the price decreases, the suppliers will supply less. If…show more content… 3. The following ate the assumed supply and demand schedules for footballs: Demand Schedule | Supply Schedule | Price | Quantity Demanded | Price | Quantity Demanded | $13 | 6000 | $13 | 71000 | $11 | 13000 | $11 | 63000 | $9 | 29000 | $9 | 29000 | $7 | 50000 | $7 | 11000 | $5 | 61000 | $5 | 0 |
a) Plot the supply and demand curves and indicate the equilibrium price and quantity.
b) What effect will an increase in the price of leather (a production input) have on the equilibrium price and quantity of footballs assuming all other things remain constant? Explain your answer with the help of a diagram.
The supply curve will shift to the left because of a decrease in supply and the equilibrium price will be high.
c) What effect will a decrease in the price of soccer balls (a substitute commodity) have on the equilibrium price and quantity of footballs, assuming again that all other things are held constant? Use a diagram in your answer.
The demand will decrease because the price of a substitute good decreased and the equilibrium will go down.
4. In each of the following circumstances, what would happen to the price and the quantity consumed of corn? Give reasons. Use diagrams to support your answers. a) The price of wheat goes up.
The price of corn will stay the same. The demand of