Equilibrium ScenariosOn a separate piece of paper, use an appropriately labeled supply/demand graph to answer thefollowing questions. For each question, you need to a) state the determinant of demand(TRIPE)/supply (NICEJAG) that caused the change, b) graph the change, and c) tell me whathappens to equilibrium price and quantity.1. What would be the effect of an increase in automobile worker wages on the market forautomobiles?2. What would be the effect of a decline in the price of personal computers on the market forsoftware?3. What would be the effect of an increase in the price of Budweiser beer on the market forCoors beer?4. What would be the effect of a governmental subsidy on the market for AIDS research?5. What would be the effect of a decline in the price of irrigation equipment on the market forcorn?6. What would be the effect of the government subsidizing the growers of watermelons onthe market for watermelons?7. What would be the effect on the market for Big Macs if McDonalds starts using highlyefficient robots to make them?8. What would be the effect on the market for German tanks during WWII if the Alliesbombed tank factories?9. What would be the effect on the market for deodorant if the U.S. government places a taxon its production?10. What would be the effect on the market for gasoline if cheap hydrogen fuel celltechnology is perfected?11. What would be the effect on the market for leg warmers if they are no longer consideredfashionable?12. What would be the effect on the market for Porches if there is an increase in incomes inthe U.S?13. What would be the effect on the market for Lucky Charms if medical researchersdiscover that eating Lucky Charms makes one cooler?

The demand and supply model is a concept in economics that explains how prices and quantities of…

Equilibrium Scenarios On a separate piece of paper, use an appropriately labeled supply/demand graph to answer the following questions. For each question, you need to a) state the determinant of demand (TRIPE)/supply (NICEJAG) that caused the change, b) graph the change, and c) tell me what happens to equilibrium price and quantity. 1. What would be the effect of an increase in automobile worker wages on the market for automobiles? 2. What would be the effect of a decline in the price of personal computers on the market for software? 3. What would be the effect of an increase in the price of Budweiser beer on the market for Coors beer?

Equilibrium Scenarios On a separate piece of paper, use an appropriately labeled supply/demand graph to answer the following questions. For each question, you need to a) state the determinant of demand (TRIPE)/supply (NICEJAG) that caused the change, b) graph the change, and c) tell me what happens to equilibrium price and quantity. 1. What would be the effect of an increase in automobile worker wages on the market for automobiles? 2. What would be the effect of a decline in the price of personal computers on the market for software? 3. What would be the effect of an increase in the price of Budweiser beer on the market for Coors beer?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 3PA: Consider the market for minivans. For each of the events listed here, identify which of the...

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Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. In each case, state how the event will affect the supply and demand diagram. Create a sketch of the diagram if necessary. Cars are becoming more fuel efficient, and therefore get more miles to the gallon. The winter is exceptionally cold. A major discovery of new oil is made off the coast of Norway. The economies of some major oil-using nations, like Japan, slow down. A war in the Middle East disrupts oil-pumping schedules. Landlords install additional insulation in buildings. The price of solar energy falls dramatically. Chemical companies invent a new, popular kind of plastic made from oil.
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.
Lets think about the market for air travel. From August 2014 to January 2015, the price of jet fuel increased roughly 47. Using the four-step analysis, how do you think this fuel price increase affected the equilibrium price and quantity of air navel?
As a general rule, is it safe to assume that a change in the price of a good will always have its most significant impact on the quantity demanded of that good, rather than on the quantity demanded of miller goods? Explain.
If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded of that product, will another 10 decrease in the price cause another 3 increase (no more and no less) in quantity demanded?
Select the correct answer. A price floor will usually shift: demand supply both neither Illustrate your answer with a diagram.
Suppose both of these events took place at the same time. Combine your analyses of the impacts of the iPod and the tariff Induction to determine the likely impact on the equilibrium price and quantity of Sony Walkman-type products. Shaw your answer graphically.