Assume we are looking at the gasoline market. How would a major increase in the supply of oil worldwide affect this market? Demand increases..a shortage developes..price declines..lower prices prevail Demand decreases..a surplus developes..price declines..lower prices prevail Supply increases..A surplus developes..price decreases..lower prices prevail Supply decreases..A shortage developes..price increases..higher prices prevail

Assume we are looking at the gasoline market. How would a major increase in the supply of oil worldwide affect this market? Demand increases..a shortage developes..price declines..lower prices prevail Demand decreases..a surplus developes..price declines..lower prices prevail Supply increases..A surplus developes..price decreases..lower prices prevail Supply decreases..A shortage developes..price increases..higher prices prevail

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 3P

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Consider the market for minivans. For each of the events listed here, identify which of the determinants of demand or supply are affected. Also indicate whether demand or supply increases or decreases. Then draw a diagram to show the effect on the price and quantity of minivans. a. People decide to have more children. b. A strike by steelworkers raises steel prices. c. Engineers develop new automated machinery for the production of minivans. d. The price of sports utility vehicles rises. e. A stock market crash lowers peoples wealth.
A market consists of groups of buyers and sellers of a good or service. Market equilibrium represents the price at which the quantity of goods supplied is balanced with the number of goods consumers are willing and able to buy. Consider the market for coffee: Assume first that there is a heatwave that damages a large portion of coffee beans. Describe how this would affect equilibrium in the market for coffee. Specifically, does demand or supply shift, in which direction, and what is the effect on equilibrium price and quantity? Last, extend your analysis to the long run, a period of time long enough for new coffee growers to enter the market or for existing growers to exit the market. How might equilibrium price and quantity in the market for coffee be affected when enough time is allowed for a change in the number of sellers in the market?
in the Fall of 2020, international demand for U.S. grains grew, pushing up the prices for grains. Indeed grain prices grew nearly 50% in the last 6 months. Your task as an analyst is to analyze the changes in the market for corn. Using a graph, depict the changes that took place in the corn market. Clearly show and explain any shifts in demand and/or supply curves. Label any shifted curves as D1 and/or S1. If the curves have not shifted, please explain why. Clearly show the new market equilibrium. Label the new equilibrium price as P1 and equilibrium quantity as Q1
Assume that we are looking at the market for snowblowers in December. The initial equilibrium is at a price of $500 and quantities of 1,000. Assume that December begins with three massive blizzards, how might this impact the snowblower market? Demand will shift to the right, causing a surplus, which causes prices to increase until we end up with higher prices and a greater quantity. Demand will shift to the right, causing a shortage, which causes prices to increase until we end up with higher prices and a lessor quantity. Demand will shift to the right, causing a shortage, which causes prices to increase until we end up with higher prices and a greater quantity. Demand will shift to the right, causing a shortage, which causes prices to decrease until we end up with higher prices and a greater quantity.
A flood decreases the quantity of roses supplied by 90 roses a day at each price. How does the rose market move to its new equilibrium? As the market moves to its new equilibrium, the price ________ and the quantity demanded ________. A. rises; increases B. falls; increases C. falls; decreases D. rises; decreases
A market consists of groups of buyers and sellers of a good or service. Market equilibrium represents the price at which the quantity of goods supplied is balanced with the number of goods consumers are willing and able to buy. Consider the market for coffee: Assume first that there is a heatwave that damages a large portion of coffee beans. Describe how this would affect equilibrium in the market for coffee. Specifically, does demand or supply shift, in which direction, and what is the effect on equilibrium price and quantity? Next, assume there is a new study that finds enormous health benefits to coffee consumption. Again, describe how this would affect equilibrium in the market for coffee. Specifically, does demand or supply shift, in which direction, and what is the effect on equilibrium price and quantity? Now, extend your analysis to what might happen if both of these events (weather which damages coffee beans and positive news on the health benefits of coffee) happen…
Assume that the market of yam is in equilibrium, Show that the following events will affect the market in ( demand, supply, equilibrium price, equilibrium quantity). 1. Research has shown that eating more yam cut the risk of heart disease 2.There is an increase in the cost of fertilizer 3. Unexpected rain destroy large portion of yam farm 4. There is a 20% increase in teachers salary and teachers are important consumers of yam assuming yam is a normal good. In each case start from a new equilibrium.
A market consists of groups of buyers and sellers of a good or service. Market equilibrium represents the price at which the quantity of goods supplied is balanced with the number of goods consumers are willing and able to buy. Consider the market for coffee: Assume first that there is a heatwave that damages a large portion of coffee beans. Describe how this would affect equilibrium in the market for coffee. Specifically, does demand or supply shift, in which direction, and what is the effect on equilibrium price and quantity?
The market for pizza has the following demand and supply schedules:a.Graph the demand and supply curves.What are the equilibrium price and quantity in this market?b.If the actual price in this market were above the equilibrium price,what would drive the market towards the equilibrium?c.If the actual price in this market were below the equilibrium price,what would drive the market towards the equilibrium?
Fall of 2020, international demand for U.S. grains grew, pushing up the prices for grains. Indeed grain prices grew nearly 50% in the last 6 months. Your task as an analyst is to analyze the changes in the market for corn. Using a grapg, depict the changes that took place in the corn market. Clearly show and explain any shifts in demand and/or supply curves. Label any shifted curves as D1 and/or S1. If the curves have not shifted, please explain why. Clearly show the new market equilibrium if changed from your answer to Question 1. Label the new equilibrium price as P1 and equilibrium quantity as Q1.
a) Draw a demand curve for cars. What happens to it in each of the following scenarios? Why? Car dealerships slash prices by 10% Prices of public transportation goes down A recession leads to falling household incomes b) Other things remaining the same, what would happen to the supply of a particular commodity if the following changes occur? 1. The price of the commodity decreases. 2. The prices of inputs used to produce the commodity increase. 3. The price of a commodity that is a substitute in production decreases.