A tax placed on buyers of airline tickets willand causes the quantity of airline tickets to.the price received by sellers of airline ticketsSelect one:O a. not change; decreaseO b. raise; decreaseOc. reduce; decreaseO d. raise; increaseO e. reduce; increase When might the supply curve for microwave ovens shift?Select one:a. only when production technology changes.O b. only when the number of sellers of microwave ovens changes.Oc. when a determinant of the supply of microwave ovens other than the price of microwaveovens changes.O d. when any determinant of the supply of microwave ovens changes.O e. Only if the price of steel increases.

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Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 41CTQ: We know that a change in the price of a product causes a movement along the demand curve. Suppose...

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We know that a change in the price of a product causes a movement along the demand curve. Suppose consumers believe that prices will be rising in the future. How will that affect demand for the product in the present? Can you show this graphically?
The price of tea increases. At the same time, robots are developed which prove to lower the cost of production of coffee. In the market for coffee, we should expect to see curves shift. The supply curve will -- and the demand curve will --- O a. shift up-shift to the left O b. shift up - shift to the right c. shift down - shift to the left O d. shift down - shift to the right
a)Draw the supply curve with the slopey our choice (individual or market demand). Choose a price level (say,P1) and find the quantity supplied (Q1) for that price, using the supply curve drawn. Now, assume that price decreases to P2. What happens to the quantity supplied? How about if we have a decrease in the input prices for that product? Show what happens and explain. b)Draw the supply and demand curves together. Show the equilibrium point. Present graphically the equilibrium price and the equilibrium quantity.
2. What happens to equilibrium price andquantity when there is an increase intechnology? Why?
Consider the market for tea. Which of the following scenarios would definitely result in an increase in the price of tea?O a. A new study is published explaining the benefits of tea, and at the same time a new technology allowing for more efficient tea farming is discovered.O b. The price of coffee falls, and at the same time a new technology allowing for more efficient tea farming is discovered.O c. Consumers expect the price of tea to fall in the future, and at the same time a fire wipes out a significant portion of tea farms.O d. The price of coffee falls, and at the same time the cost of labor to farm tea decreases.Oe. A new study is published explaining the benefits of tea, and at the same time a fire wipes out a significant portion of tea farms.
Assumed that the demand (D) for potato given by demand: Q = 1500 − 15P, where Q isquantity per month measured in kilos and P is price per kilo. 1. Supply is equals to 900 kilos one day, what will the price be?2. Supply were to fall to 300 kilos, what would the price be?3. The D for Potato shifts outward to Q = 2100 − 15P, what will be answer in part 1 and 2 change?4. Graph the results
d. Suppose there is an increase in consumers' incomes. In the market for automobiles(a normal good), does this event cause an increase in demand or an increase in quantitydemanded? Does this cause an increase in supply or an increase in quantity supplied?(Explain. NB: Explanation must not be more than half a page.)e. Suppose there is an advance in the technology employed to produce automobiles. Inthe market for automobiles, does this event cause an increase in supply or an increasein the quantity supplied? Does this cause an increase in demand or an increase in thequantity demanded? Explain NB: Explanation must not be more than half a page.f. The demand and supply functions for two related commodities A and B in two differentmarkets are defined below:QdA= 410-5PA-2PB QdB= 295-PA-3PBQsA= -60+3PA QsB= -120+2PBi. Find the equilibrium conditions in the two marketsii. How are goods A and B related? Explain your.
What is the Supply Schedule and the Supply curve, and how are they related? Why does the Supply curve slope up wards? What are the other factors that affect market supply and how increase or decrease in other factors affect the supply curve of a product? Does the change in producer’s technology lead to a movement of the supply curve or a shift of the supply curve? Also does a change in Price of a commodity shift the supply curve or lead to the movement of the supply curve/ kindly explain your answer with graphs and examples
What will happen if the price were below the equilibrium price? Select one: O a. Quantity demanded would exceed quantity supplied and there would be a surplus O b. Quantity demanded would exceed quantity supplied and there would be a shortage O c. Quantity supplied would exceed quantity demanded and there would be a surplus O d. Quantity supplied would exceed quantity demanded and there would be a shortage Oe. Quantity supplied would equal quantity demanded and the market would clear
d) Assume instead there is an increase in the price of tin, a major input in producing gadgets. Whatwill be the effect of an increase in the price of tin on the market for gadgets?
B). Draw the supply curve with the slope of your choice (individual or market demand). Choose a price level (say, P1) and find the quantity supplied (Q1) for that price, using the supply curve drawn. Now, assume that price decreases to P2. What happens to the quantity supplied? How about if we have a decrease in the input prices for that product? Show what happens and explain. C). Draw the supply and demand curves together. Show the equilibrium point. Present graphically the equilibrium price and the equilibrium quantity.
If the price of coffee increases, then: Select one: O A. Demand for coffee substitutes will increase. B. Demand for coffee substitutes will decrease OC. Demand for coffee will decrease. O D. Quantity demanded coffee will increase.

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A tax placed on buyers of airline tickets will the price received by sellers of airline tickets and causes the quantity of airline tickets to Select one: O a. not change; decrease O b. raise; decrease Oc. reduce; decrease O d. raise; increase O e. reduce; increase