Insert Draw Design Layout Directions: Write below whether each factor will increase or decrease supply for the market listed, what determinant of supply caused the increase and decrease and show the supply curve shift on the graph. Scenario Determinant and Change Graph 9. Market: Shorts this month Increase or Decrease: P Scenario: Prices of shorts are expected to rise ROTTEN: in the future. 10. Market: Strawberries this month Increase or Decrease: Scenario: Prices of strawberries are expected ROTTEN: D to fall next month. 11. Market: Cereal market Increase or Decrease: P. ROTTEN: Scenario: Grain prices are falling due to surpluses.

Insert Draw Design Layout Directions: Write below whether each factor will increase or decrease supply for the market listed, what determinant of supply caused the increase and decrease and show the supply curve shift on the graph. Scenario Determinant and Change Graph 9. Market: Shorts this month Increase or Decrease: P Scenario: Prices of shorts are expected to rise ROTTEN: in the future. 10. Market: Strawberries this month Increase or Decrease: Scenario: Prices of strawberries are expected ROTTEN: D to fall next month. 11. Market: Cereal market Increase or Decrease: P. ROTTEN: Scenario: Grain prices are falling due to surpluses.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 3SCQ: In an analysis of the market for paint, an economist discovers the facts listed below. State whether...

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In 2018, a cold front in Barbados increased both the demand for water heaters andgasolines. The usage of gasoline was 581 tonnes, an increase from 499 tonnes in theprevious year. The Petroleum Company of Barbados advised Government officials thatdemand could outweigh supply and asked companies to increase the supply. They alsoasked major gasoline users, such as power plants, to reduce demand.i. Illustrate the effect of the cold front on the demand for gasoline using a demandcurve diagram over the two years. ii. Assuming the Petroleum Company of Barbados did not issue a directive for anincrease in supply and a decrease in demand, explain the problem that would existin the economy and how would this be corrected over time. iii. Illustrate the effect of major gasoline suppliers increasing supply as well as usersreducing their demand. iv. Discuss one factor EACH that you think influence demand and supply for waterheaters. Provide examples v. Is demand for gas is price elastic or price…
In 2018, a cold front in Barbados increased both the demand for water heaters andgasolines. The usage of gasoline was 581 tonnes, an increase from 499 tonnes in theprevious year. The Petroleum Company of Barbados advised Government officials thatdemand could outweigh supply and asked companies to increase the supply. They alsoasked major gasoline users, such as power plants, to reduce demand. i. Illustrate the effect of the cold front on the demand for gasoline using a demandcurve diagram over the two years. ii. Assuming the Petroleum Company of Barbados did not issue a directive for anincrease in supply and a decrease in demand, explain the problem that would existin the economy and how would this be corrected over time.
During a discussion several years ago on buildinga pipeline to Alaska to carry natural gas, the U.S. Senatepassed a bill stipulating that there should be a guaranteedminimum price for the natural gas that would flowthrough the pipeline. The thinking behind the bill wasthat if private firms had a guaranteed price for theirnatural gas, they would be more willing to drill for gasand to pay to build the pipeline.a. Using the demand and supply framework,predict the effects of this price floor on the price,quantity demanded, and quantity supplied.b. With the enactment of this price floor for naturalgas, what are some of the likely unintendedconsequences in the market?c. Suggest some policies other than the price floorthat the government can pursue if it wishes toencourage drilling for natural gas and for a newpipeline in Alaska.
In 2018, a cold front in Barbados increased both the demand for water heaters andgasolines. The usage of gasoline was 581 tonnes, an increase from 499 tonnes in theprevious year. The Petroleum Company of Barbados advised Government officials thatdemand could outweigh supply and asked companies to increase the supply. They alsoasked major gasoline users, such as power plants, to reduce demand. Illustrate the effect of the cold front on the demand for gasoline using a demandcurve diagram over the two years.
Use graphs to demonstrate the effect of ashift in supply or demand, and describe what causesthese curves to shift
According to a researcher at the FDA, vegan foods are “the way if the future”. Morepersons have become health conscious and are looking for foods which will fit thislifestyle. One such food is the Beyond Burger, a plant-based alternative to beef. Notably,despite strong demand for beef burgers, the supply chain has seen a host of disruptionsthat are preventing producers from getting their products to market.Beyond Burger’s sales in Canada totaled $3.0 billion at the end of 2021, accounting for20% of all retail sales of burger patties (meat used in burgers), and 40% of the largermarket for vegan foods. By the end of 2025, sales of Beyond Burgers are projected to makeup 40% of all burger sales.i. Illustrate and explain the effect of the increased use of Beyond Burgers on (i) theburger patties market and (ii) the vegan market.
Consider the market for minivans. For each of theevents listed here, identify which of the determinantsof demand or supply are affected. Also indicatewhether demand or supply increases or decreases.Then draw a diagram to show the effect on the priceand quantity of minivans.a. People decide to have more children.b. A strike by steelworkers raises steel prices.c. Engineers develop new automated machineryfor the production of minivans.d. The price of sports utility vehicles rises.e. A stock market crash lowers people’s wealth.
Assuming hypothetical equilibrium in Demand/Supply Model of Apples, illustrate impact of following events:Suppose the Doctors recommend eating Apples every morning. The Monsoon rains adversely affect the Apple Harvest. The government announces increase in Wages of workers. The price of petrol in the market comes down. Consumers Income falls during government imposed Lockdowns due to health concerns. Given below is the Supply Schedule of Nestle Milk per liter:Price of Milk per liter (in Rs) 100 200 300 400Quantity Supplied per day in liters (in 1000s) 100 200 300 400Use the above data to illustrate the Supply Curve in a graph with complete labels. Assume Rs. 200 is the original price of milk per liter and 200,000 liters is the original quantity of supply. Suppose the price rises from Rs. 200 to Rs. 300, what will be the amount of Quantity Supplied?Illustrate the impact of (C) on the graph. Is this a movement along the supply curve or shift of the curve?
create your own scenario of the determinant of demand and determinant of supply.
Explain and illustrate each of the following statements using supply-anddemand diagrams. Show the impact on equilibrium price and quantity.i. Laptops – There is increased access to wireless technology and lighterweight products are available. Microchips a component of laptops arecheaper as new technology has come online. [3 marks]ii. Lychee - Production in Canada totalled 1.5 million barrels in 2018, a 40percent increase from 2017. Demand increased by even more thansupply, over the same period. [3 marks]iii. Gasoline - The price of sedans rises and electric cars have become morepopular [3 marks]iv. Wool coats: New knitting machines are invented and insect infestationdestroys most of the cotton crop in Canada
Explain and illustrate each of the following statements using supply-anddemand diagrams. Show the impact on equilibrium price and quantity.i. Laptops – There is increased access to wireless technology and lighterweight products are available. Microchips a component of laptops arecheaper as new technology has come online. ii. Lychee - Production in Canada totalled 1.5 million barrels in 2018, a 40percent increase from 2017. Demand increased by even more thansupply, over the same period. iii. Gasoline - The price of sedans rises and electric cars have become morepopular iv. Wool coats: New knitting machines are invented and insect infestationdestroys most of the cotton crop in Canada
On a microeconomic demand curve, a decrease in price causes an increase in quantity demanded because the product in question is now relatively less expensive thansubstituteproducts.Explainwhyaggregatedemand does not increase for the same reason in response to a decrease in the aggregate price level. In other words, whatcausestotalspendingtoincreaseifitisnotbecause goods are now cheaper?