A tariff has been placed on sisal, a plant that is used to produce sisal rugs. Wool rugs are a substitute in consumption for sisal rugs. If the price of wool rugs increases and the effect of this is greater on the demand for sisal rugs than the impact of the tariff on supply, what happens to the equilibrium price and quantity of sisal rugs?   a. Price increases, and quantity decreases.   b. Price decreases, and quantity increases.   c. Price increases, and quantity increases.   d. Price decreases, and quantity decreases.

Q: Illustrate using a supply and demand graph what happened to gasoline prices in the World View, and…

A: The equilbirum price and quantity of a product sold in the market are determined by the forces of…

Q: A farmer can plant either wheat or tobacco. Over time, consumers realise the adverse health effects…

A: The supply curve and the demand curve determine the equilibrium price and equilibrium quantity in an…

Q: If there is a decrease in demand for a good, what will most likely happen to the price and quantity…

A: A decrease in demand can be because of various reasons like Increase in price, A decrease in the…

Q: Which of the following will definitely occur when there is an increase in demand for and decrease in…

A: Demand is the willingness of the consumers for consuming goods and services at certain price levels.…

Q: Which of the following is true when the equilibrium price of wheat in the world market is higher…

A: An open economy has the opportunity to sell additional output in the international market or to buy…

Q: Table below shows the market for goat's milk in the country of Pegasus (in thousands of litres).…

A: Given table: Price ($) Quantity Demanded Quantity Supplied 0.1 440 200 0.15 400 240 0.2 360…

Q: Suppose the graph below represents the demand and supply for rice at various prices, answer the…

A: The shortage or surplus is calculated by subtracting quantity demanded from quantity supplied. The…

Q: The graph below shows domestic supply and demand for coffee in the U.S. Suppose that at any price,…

A: Answer: If the foreign suppliers will supply 50,000 pounds of coffee at any given price then the…

Q: Suppose demand and supply for eggs are given by the following equation: Qd = 100-20P Qs = 10 +40P…

A: Market equilibrium is that point where quantity demanded is equal to quantity supplied.

Q: I. Consider the market for sugar in the U.S. It is difficult to grow sugar outside of warm, humid…

A: 1. Given demand curve for sugar in the US :- QD = 15 - P Supply curve :- QS = 3P - 1

Q: Consider the markets for cell phones and landline telephone service in France. Presume that when the…

A: The market for cell phones and telephone service in France and the information on it is given…

Q: The following table shows the market demand and supply for Gala apples in Red Deer. |Quantity…

A:

Q: How did an export ban on onion by India affected the price of local onion in Bangladesh? Can you…

A: (Note: Only the first three parts have been answered).    The demand (dd) for a product shows the…

Q: Consider the market for dresses. Suppose a decrease in tariffs allow manufacturers of dresses to…

A: Equilibrium in the market of goods occurs at the intersection of demand and supply curves

Q: (i) Calculate the equilibrium price and quantity in the domestic market of Sri Lanka. (ii) Calculate…

A: Equilibrium is achieved where quantity demanded is equal to quantity supplied.

Q: Assume that the markets for sugar cane, rum and whiskey are initially in equilibrium (i.e., supply…

A: please find the answer below

Q: Assume that the markets for sugar cane, rum, and whiskey are initially in equilibrium (i.e., supply…

A: ANSWER STEP-1 With good harvest, the supply of sugar cane will increase:- Sugar cane market: Due to…

Q: Suppose that currently 4 million automobiles are imported into the U.S. and the average price of…

A: An import quota limits the import of automobiles that leads to a rise in the demand for domestic…

Q: The United States does not allow oranges from Brazil (the world's largest producer of oranges) to…

A: a) If the oranges from Brazil are sold in USA, the supply of oranges in USA would increase. This…

Q: each case. If consumer income decreases and "road crew" wages fall, quantity will rise and prices…

A: a. Uncertain. In this case, the demand will fall due to decrease in consumer income. When crew wage…

Q: One of the largest changes in the economy over thepast several decades is that technological…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: Assume that the markets for sugar cane, rum and whiskey are initially in equilibrium (i.e., supply…

A: ANSWER    With good harvest, the supply of sugar cane will increase.   Sugar cane market: Due to…

Q: Consider a competitive market for apartments in Bandung. What is the effect on the equilibrium price…

A: Competitive market is market structure in which the price and quantity of the commodities is…

Q: Tornado Bulbul hits Bangladesh and affects the crops and fish hatcheries in the coastal areas. What…

A: Tornado will have negative impact on the crop amd fish production on coastal areas market…

Q: Suppose that a new scientific study is published that demonstrates that eating apples slows aging.…

A: A scientific study is published that demonstrates that eating apples slows aging. This will increase…

Q: An add in the newspaper claims that the price of milk will increase next week. At the same time, a…

A: The market is a system when the demand and the supply forces would result in the determination of…

Q: What is the effect on equilibrium price of onion in india when federal government release onions as…

A: If the demand of onions is more than its production, it would create a dis-equilibrium in the…

Q: (i) Calculate the equilibrium price and quantity in the domestic market of Sri Lanka. (ii) Calculate…

A: 3. (i) Supply of sugar in sri lanka = Qs = p (in 1000 KGs) Demand of sugar in sri lanka = Qd = 4 - P…

Q: Consider the market for coffee. a.) Draw a supply and demand curve for the market for coffee. Label…

A: a) The diagram below shows the market of coffee. In the diagram below price is on y-axis and…

Q: The US government reduces the tariff on imported coffee will this affect the supply or the deman for…

A: A tariff is a tax imposed by a country on the goods and services that are imported from another…

Q: Suppose that Carlos and Deborah are the only consumers of scented candles in a particular market.…

A: In the market for goods, there are many consumers. It is crucial to find out the market demand for…

Q: Suppose the demand curve and supply curve for eggs in the United States are given by the following…

A: Equilibrium quantity and price are determined where market demand and market supply are equal in the…

Q: The weekly demand and supply schedules for T-shirts (in millions) in a free market are as follows:…

A: Answer 4 Price Quantity demanded  New Quantity demanded  Quantity Supplied 8 6 + 4 10 18 7 8…

Q: Concerned about the political fallout from rising gas prices, the U.S. government decides to impose…

A: The measure that depicts the maximum amount that could in turn be charged by a seller for providing…

Q: Price (dollars per pound) D. 1o Quantity (millions of pounds per day) 14 The graph illustrates the…

A: Exchange market reflects a marketplace where the demanders and sellers of a currency interact with…

Q: How will a simultaneous increase in the price of substitute good and an improvement in production…

A: Increase in price of substitute good will eventually increase the demand of the other good. Due to…

Q: Suppose the following information is available for the Coffee market in Finland for breakfast. Given…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Over the past 20 years, the average price of avocados has more than doubled. Assume that the price…

A: 1) When restrictions on imports would be lifted, it implies there would be greater supply of…

Q: Combines part 1 and 2. Suppose that the US goverment reduces the tarifft on imported coffee, and a…

A: The tariffs and the quotas are the two different methods that are used by the government to reduce…

Q: (ii) Demonstrate and discuss each of the following would have on demand or supply of coffee.…

A: Step 1: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Consider a policy to help struggling farmers bysetting a minimum trade price for wheat. Willthis be…

A: Price Controls – are the minimum or maximum legal prices that are set by the Govt. Price Ceiling…