@ 7 100%AT&T9:08 AMHW 1.pdfIII. Supply and Demand Changes (be sure to label the axis on all of your graphs)a) Suppose that you do a national survey of Americans, asking them how they feel aboutAmerican-made cars versus Japanese-madeAmericans' "taste" for American-made cars has decreased and the taste for Japanese-made cars has increased. Using the demand and supply model, show how this change intaste for American-made cars will impact the market for American-made cars. Give yourpredictions for the change in the equilibrium price and the equilibrium quantity ofAmerican-made cars bought and soldb) Suppose that you have information indicating that the price of steel (an important inputof production in the auto industry) has doubled during the past few months. Show howthis economic shock will influence the market for American made cars and give yourSupposeas well that you discover thatcars2predictions for equilibrium price and sales changec) Suppose both (a and b above) of these shocks arewould be your prediction for equilibrium price and sales change in the American carmarket?occurring simultaneously. Now whatd) Suppose Congress approves a proposed "temporary worker" program and American firmsfind out that theyworkers become 'less scarce'. How would this economic shock impact the market forlettuce?are able to hire workers while paying lower wages. This happens becausee) Scientific reports have shown that iceberg lettuce (much of it grown in California) showhigh levels of contamination from rocket fuel. California farmers use the Colorado Riverfor irrigation of their fields and the water of the Colorado River is contaminated fromproduction on sites used by several defense contractors. How would this economic shockimpact the market for lettuce?) Suppose both shocks (d and e above)predictions for equilibrium price and sales change?g) There are four possible ways that demand and supplyThese ways are listed below. For each case, draw two demand and supply graphs andshow the demand changeOn each graph, indicate the direction of the change in P* and Q*. Finally, in each case,give your prediction for the overall net impactdemand and the supply change simultaneouslySimultaneous Increase in Demand and Increase in SupplySimultaneous Decrease in Demand and Decrease in SupplySimultaneous Increase in Demand and Decrease in SupplySimultaneous Decrease in Demand and Increase in Supplyoccur simultaneously. Now what would be yourcan simultaneously shift in a marketon the first graph and the supply change on the second graphon P* and Q* for the market when both theIV. Price ControlPrice Per BushelQuantity DemandedQuantity Supplied(dollars)336,00030,0002,000625,0005,000620,00010,0001216,0001516,00013,00023,000182130,0008,000

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Asked Sep 24, 2019
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Question 3 A-G I kind of understand what they are asking but I don’t know what specifically they want me to show. Are they all supposed to be graphs? 

@ 7 100%
AT&T
9:08 AM
HW 1.pdf
III. Supply and Demand Changes (be sure to label the axis on all of your graphs)
a) Suppose that you do a national survey of Americans, asking them how they feel about
American-made cars versus Japanese-made
Americans' "taste" for American-made cars has decreased and the taste for Japanese-
made cars has increased. Using the demand and supply model, show how this change in
taste for American-made cars will impact the market for American-made cars. Give your
predictions for the change in the equilibrium price and the equilibrium quantity of
American-made cars bought and sold
b) Suppose that you have information indicating that the price of steel (an important input
of production in the auto industry) has doubled during the past few months. Show how
this economic shock will influence the market for American made cars and give your
Suppose
as well that you discover that
cars
2
predictions for equilibrium price and sales change
c) Suppose both (a and b above) of these shocks are
would be your prediction for equilibrium price and sales change in the American car
market?
occurring simultaneously. Now what
d) Suppose Congress approves a proposed "temporary worker" program and American firms
find out that they
workers become 'less scarce'. How would this economic shock impact the market for
lettuce?
are able to hire workers while paying lower wages. This happens because
e) Scientific reports have shown that iceberg lettuce (much of it grown in California) show
high levels of contamination from rocket fuel. California farmers use the Colorado River
for irrigation of their fields and the water of the Colorado River is contaminated from
production on sites used by several defense contractors. How would this economic shock
impact the market for lettuce?
) Suppose both shocks (d and e above)
predictions for equilibrium price and sales change?
g) There are four possible ways that demand and supply
These ways are listed below. For each case, draw two demand and supply graphs and
show the demand change
On each graph, indicate the direction of the change in P* and Q*. Finally, in each case,
give your prediction for the overall net impact
demand and the supply change simultaneously
Simultaneous Increase in Demand and Increase in Supply
Simultaneous Decrease in Demand and Decrease in Supply
Simultaneous Increase in Demand and Decrease in Supply
Simultaneous Decrease in Demand and Increase in Supply
occur simultaneously. Now what would be your
can simultaneously shift in a market
on the first graph and the supply change on the second graph
on P* and Q* for the market when both the
IV. Price Control
Price Per Bushel
Quantity Demanded
Quantity Supplied
(dollars)
3
36,000
30,000
2,000
6
25,000
5,000
6
20,000
10,000
12
16,000
15
16,000
13,000
23,000
18
21
30,000
8,000
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@ 7 100% AT&T 9:08 AM HW 1.pdf III. Supply and Demand Changes (be sure to label the axis on all of your graphs) a) Suppose that you do a national survey of Americans, asking them how they feel about American-made cars versus Japanese-made Americans' "taste" for American-made cars has decreased and the taste for Japanese- made cars has increased. Using the demand and supply model, show how this change in taste for American-made cars will impact the market for American-made cars. Give your predictions for the change in the equilibrium price and the equilibrium quantity of American-made cars bought and sold b) Suppose that you have information indicating that the price of steel (an important input of production in the auto industry) has doubled during the past few months. Show how this economic shock will influence the market for American made cars and give your Suppose as well that you discover that cars 2 predictions for equilibrium price and sales change c) Suppose both (a and b above) of these shocks are would be your prediction for equilibrium price and sales change in the American car market? occurring simultaneously. Now what d) Suppose Congress approves a proposed "temporary worker" program and American firms find out that they workers become 'less scarce'. How would this economic shock impact the market for lettuce? are able to hire workers while paying lower wages. This happens because e) Scientific reports have shown that iceberg lettuce (much of it grown in California) show high levels of contamination from rocket fuel. California farmers use the Colorado River for irrigation of their fields and the water of the Colorado River is contaminated from production on sites used by several defense contractors. How would this economic shock impact the market for lettuce? ) Suppose both shocks (d and e above) predictions for equilibrium price and sales change? g) There are four possible ways that demand and supply These ways are listed below. For each case, draw two demand and supply graphs and show the demand change On each graph, indicate the direction of the change in P* and Q*. Finally, in each case, give your prediction for the overall net impact demand and the supply change simultaneously Simultaneous Increase in Demand and Increase in Supply Simultaneous Decrease in Demand and Decrease in Supply Simultaneous Increase in Demand and Decrease in Supply Simultaneous Decrease in Demand and Increase in Supply occur simultaneously. Now what would be your can simultaneously shift in a market on the first graph and the supply change on the second graph on P* and Q* for the market when both the IV. Price Control Price Per Bushel Quantity Demanded Quantity Supplied (dollars) 3 36,000 30,000 2,000 6 25,000 5,000 6 20,000 10,000 12 16,000 15 16,000 13,000 23,000 18 21 30,000 8,000

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Hey, Thank you for the question. According to our policy we can only answer 3 subparts per question. If you need further help, post the question again and mention the subpart you want us to solve.

Step 2

a)

The change in taste leads to a fall in demand for American cars. If the initial demand is D1 and supply is S1, the equilibrium is at e with price P1 and quantity Q2. The fall in demand leads to a leftward shift in the demand curve to D2 and the new equilibrium point is e2, price is reduced to P2 and Quantity bought and sold reduces to Q2.

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American Cars Price S1 P1 Pe D1 De Quantity

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Step 3

b)

The increase in the price of steel makes the inputs for producing the American cars expensive. Hence the supply of the car will reduce, thus shifting...

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Price American Cars Ss es Ps e1 P1 D1 Quantity

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