If a movie theater ticket is a normal good, what do you suppose would happen to price and quantity during an economic recession? Question 2 options: (highlight correct answer) Price and quantity would both increase Price would increase and quantity decrease Price and quantity would both decrease Price would decrease and quantity increase
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Question 2
If a movie theater ticket is a normal good, what do you suppose would happen to
Question 2 options: (highlight correct answer)
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Price and quantity would both increase |
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Price would increase and quantity decrease |
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Price and quantity would both decrease |
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Price would decrease and quantity increase |
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- 11 ______ is the total quantity of goods and services that will be purchased at all possible price levels. a. Demand b. Aggregate supply c. Supply d. Aggregate demandQuestion 54 If there is a scientific discovery that eating peanuts cures cancer then which of the following occurs in the market for peanuts? Question 54 options: a) supply decreases b) demand decreases c) supply increases d) demand increasesIf the economy goes into a recession and incomes fall, what happens in markets? Question 2 options: Prices of normal goods go up because the demand for them increases Prices of all goods go down None of the other answers is correct Prices of inferior goods go up because the demand for them increases
- Scenario 1: The economy enters a recession driving down the demand for homes nationwide.3. Currently, there is world-wide shortage of computer microchips.Determine the effects on: a. Supply of Toyota automobiles made in Ontario. b. Supply of peanuts grown in SouthwesternOntario. c. Demand for automobiles in Canada. d. GDP in Canada. e. Short-run aggregate demand and aggregate supply in Canada’s economy.Question 3 Explain why oil prices have fallen this year (2020). Be sure to identify the changes in key determinants of demand and supply.
- Question 2Identify what sort of effects the following listed events have.You are required to define the market under study (for example: the labour market, oil market, etc). Explain whether the event acts on the demand or supply side, and whether the event leads to a quantity or price change, or leads to a shift in demand and/or supply.Make sure to explain what sort of assumptions you are making on the elasticities of demand and supply.a) An increase in oil prices as a consequence of a price dispute in the world oil marketsb) The implementation of a minimum wagec) The implementation of subsidies to milk producers in Australiad) The implementation of a Carbon tax in the economy. A Carbon tax is charged according to the level of emissions of greenhouse gases in an economy.e) The implementation of an increase in tuition in University studiesWhat effect over the last decade, has the increasingly efficient and inexpensive technology of online college courses had on the college textbook market? Question 48 options: a) The demand for physical textbooks have steadily decreased, and as a result more publishing companies are having less demand for high skilled textbook editor jobs. b) The demand for textbooks has declined resulting in publishing companies increasing their demand of textbook editor jobs. c) The demand for textbook has increased as well as the supply. d) The supply for college textbooks has increased as a result there are fewer textbook publishing companies.41-Write the differences between increase in supply and decrease in supply.
- Regarding a supply and demand model, what would happen to the equilibrium price and quantity if the demand increased? Question 22 options: Price would decrease and quantity would increase. Price and quantity would increase. Price and quantity would decrease. Price would increase and quantity would decrease.(KEY QUESTION) Consider the market for station wagons. For each of the events listed below,identify which of the determinants of demand or supply are affected. Also indicate whether demandor supply is increased or decreased.a. People decide to have more children.b. The price of mini-vans rises.c. A strike by steelworkers raises steel prices.d. Engineers develop new automated machinery for the production of station wagons.e. A stock market crash lowers people's wealth.f. IMPORTANT: In all the above cases, is the change in equilibrium quantity less, more, orequal to the initial change in demand or supply? Why is this? (recall our discussion in thelectures, you can check slides 3-6 from week 5 or the lecture recordings.g. IMPORTANT: Now assume the changes in parts a. and c. happen simultaneously. Show themon the diagram and explain what will/may happen to the equilibrium price and quantity (Iencourage you to try this for combinations of the other changes too) PLEASE ANSWER SUBQUESTIONS D…(KEY QUESTION) Consider the market for station wagons. For each of the events listed below,identify which of the determinants of demand or supply are affected. Also indicate whether demandor supply is increased or decreased.a. People decide to have more children.b. The price of mini-vans rises.c. A strike by steelworkers raises steel prices.d. Engineers develop new automated machinery for the production of station wagons.e. A stock market crash lowers people's wealth.f. IMPORTANT: In all the above cases, is the change in equilibrium quantity less, more, orequal to the initial change in demand or supply? Why is this? (recall our discussion in thelectures, you can check slides 3-6 from week 5 or the lecture recordings.g. IMPORTANT: Now assume the changes in parts a. and c. happen simultaneously. Show themon the diagram and explain what will/may happen to the equilibrium price and quantity (Iencourage you to try this for combinations of the other changes too)
