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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.Discuss clearly how the following items may affects the change in demand. Population change Prices of related goods Expected future prices, income, and creditExplain what would happen in the following markets given the following demand or supply shocks. In your answer clearly state what happened to supply or demand (whether it increased or decreased) and what would likely happen to the equilibrium price and quantity as a result, other factors constant. Market: Electric vehicles. Shock: Due to the recently enacted CHIPS Act, there is a significant decrease in the price of U.S. semiconductors, which are used as an input in the production of electric vehicles. Market: In home exercise equipment. Shock: Due to the waning concerns around the COVID-19 pandemic and loosening restrictions, U.S. consumers go back to gyms and public recreational centers. Market: U.S. Cotton. Shock: There is a significant drought in the Southwestern U.S., where the majority of U.S. cotton is grown. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for…
- Use the results of your answers on both the Scenario 1 and Scenario 2 graphs to complete the following table. Begin by indicating the overall change in the equilibrium price and quantity after the shift in demand or supply for each shift-magnitude scenario. Then, in the final column, indicate the resulting change in the equilibrium price and quantity when supply and demand shift in the direction you previously indicated on both graphs. If you cannot determine the answer without knowing the magnitude of the shifts, choose Cannot determine. Change in Equilibrium Objects Scenario 1 Scenario 2 When Shift Magnitudes Are Unknown Price Quantity *option Increase, Decrease, Cannot Determine True or False: When both the demand and supply curves shift, the curve that shifts by the larger magnitude determines the effect on the undetermined equilibrium object.In each of the following scenarios, the market is initially in equilibrium. Determine the impact each event would have on the given market. a. New advances in recycling technology reduce the cost of producing paper made from recycled material. 1. Which of the following will occur in the market for paper made from recycled material? supply will decrease demand will increase supply will increase demand will decrease 2. Will the advancement in recycling technology result in a shortage or surplus of paper made from recycled material at the previous price? Will the price of paper made from recycled material rise or fall? surplus, rise shortage, fall shortage, rise surplus, fall b. Suppose General Electric, one of the largest suppliers of light bulbs, decides to discontinue its production of light bulbs. 1. Which of the following will occur in the market for light bulbs? demand will decrease demand will increase supply will increase supply will decrease…What will happen to the equilibrium price and quantity of pens if the price of pencils rises, consumers experience an increase in income, writing in ink becomes fashionable, people expect the price of pens to rise in the near future, the population increases, fewer firms manufacture pens, and the wages of pen-makers increase? a. Equilibrium quantity would decrase, but the impact on equilibruim price would be ambiguous. b. Equilibruim price would increase, but the impact on equilibruim quantity would be ambigious. c. Equilibrium quantity would incrase, but the impact on equilibruim would be ambiguous d. Equilibrium price increases and equilibruim quantity decreases e. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
- Assume the world market for crude oil is in equilibrium at $120/barrel. How would an increase in demand together with an increase in supply (all else equal) be expected to affect the equilibrium price and quantity of crude oil? Using supply, demand and any appropriate changes, graphically illustrate your answer as part of your explanationHello, I only need the answer to the last question that is in BOLD. 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…Construct a graph (diagram) for this question without an explanation. What will happen to the equilibrium price and quantity of coffee if it is discovered that coffee helps to prevent colds and, at the same time, Brazil and Vietnam emerge in the global market as massive producers of coffee? Assume the responsiveness of supply is greater than the responsiveness of demand
- Predict how each of the following economic changes will affect the financial market for home loans. (It may help to use a demand and supply diagram to conduct your analysis.) Rents rise extremely rapidly. Which curve will shift: supply or demand? In which direction will the curve shift: right or left? Briefly explain why this scenario caused this curve shift. What will happen to equilibrium price? What will happen to equilibrium quantity?Explain and illustrate each of the following statements using supply-and-demand diagrams. Show the impact on equilibrium price and quantity. i. Laptops – There is increased access to wireless technology and lighter-weight products are available. Microchips a component of laptops are cheaper as new technology has come online. marks] ii. Lychee - Production in Canada totaled 1.5 million barrels in 2018, a 40 percent increase from 2017. Demand increased by even more than supply, over the same period. iii. Gasoline - The price of sedans rises and electric cars have become more popular iv. Wool coats: New knitting machines are invented and insect infestation destroys most of the cotton crop in CanadaIn each of the following scenarios, the market is initially in equilibrium. Determine the impact each event would have on the given market. SELECT THE CORRECT ANSWER IN EACH SITUATION 1. New advances in recycling technology reduce the cost of producing paper made from recycled material. a. Which of the following will occur in the market for paper made from recycled material? -supply will decrease -supply will increase -demand will decrease -demand will increase b. Will the advancement in recycling technology result in a shortage or surplus of paper made from recycled material at the previous price? Will the price of paper made from recycled material rise or fall? -surplus, rise -shortage, rise -shortage, fall -surplus, fall 2. Suppose General Electric, one of the largest suppliers of light bulbs, decides to discontinue its production of light bulbs. a. Which of the following will occur in the market for light bulbs? -demand will increase -supply…