If sellers expect the price of cars to increase next year, what will happen to the supply curve for cars this year? Describe any changes to equilibrium price and quantity. Show a graph.

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
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answer question 4 and 6 onlyyyy
4. If sellers expect the price of cars to increase next year, what will happen to
the supply curve for cars this year? Describe any changes to equilibrium
price and quantity. Show a graph.
5. AC brand bread is an inferior good. If consumers experience a fall in their
incomes, then the demand for AC bread will (increase/decrease) and the
price of AC bread will (rise/fall).
6. (a) Use the table below to determine the equilibrium price and quantity.
(b) The price of oil falls, lowering production costs, and the quantity
supplied increases by 180 units at each price level. What is the new
equilibrium price and quantity?
Transcribed Image Text:4. If sellers expect the price of cars to increase next year, what will happen to the supply curve for cars this year? Describe any changes to equilibrium price and quantity. Show a graph. 5. AC brand bread is an inferior good. If consumers experience a fall in their incomes, then the demand for AC bread will (increase/decrease) and the price of AC bread will (rise/fall). 6. (a) Use the table below to determine the equilibrium price and quantity. (b) The price of oil falls, lowering production costs, and the quantity supplied increases by 180 units at each price level. What is the new equilibrium price and quantity?
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