New cars are normal goods.  What will happen to the equilibrium price of new cars if the price of gasoline rises, the price of steel falls, public transportation becomes cheaper and more comfortable, auto-workers accept lower wages, and automobile insurance becomes more expensive?

Q: Illustrate the appropriate change and specify whether each change represents an increase or a…

A: If a product or service appears to be similar enough to another to be considered a substitute or…

Q: Tomato sauce is a compliment for hot dogs.If the price of hot dogs rises, what happens to the market…

A: Answer: Introduction: Complementary goods are those goods that are consumed together like hot dogs…

Q: Suppose research shows that drinking sodas increases the risk of heart disease. As a result, the…

A: Demand Curve: - demand curve is the graphical way of showing the relationship between the quantity…

Q: Using the table, for each line item and its associated column, describe how the market for each…

A: The measure that depicts the quantities of goods and services being demanded by customers reflects…

Q: Using appropriate (completely labelled) diagrams, explain the effect upon equilibrium price and…

A: Complementary goods are the goods that are consumed together. For example, pencil and notebooks,…

Q: For each of the following observations, determine whether supply, demand, or both shifted and how.…

A: 1. As the hybrid electric car prices are falling, while the volume of hybrid vehicles sold is…

Q: If price of tomato sauce/ French fries falls what happens to equilibrium price and quantity of…

A: A product is considered to be in equilibrium quantity when there is no shortage or surplus on the…

Q: Tomato sauce is a compliment for hot dogs. If the price of hot dogs rises, what happens to the…

A: Since tomato sauce is a compliment for hot dogs they both used together. When the price of hot dogs…

Q: The price of tennis shoes is shown to depend on the price of rubber. Which of the following…

A: Answer: Correct answer: option 4 (An increase in rubber price potentially causes an increase in…

Q: What can we expect to occur to hot dog buns if the price of hot dogs were to decrease?

A: Law of demand - If other things remains constant, decrease in price of a good will increase the…

Q: Assume that milk and chocolate milk are substitute goods.  If the price of milk falls, then which of…

A: In case of substitute goods price effect is positive. It means that increase in price of one will…

Q: If we are at Meat Market, explain what will happen to equilibrium price (Pe) and equilibrium…

A: A market will work efficiently when it is operated at the equilibrium level, and this level may…

Q: In the market for rye bread, all other things being equal, which of the following would cause the…

A: option a is incorrect as A decrease in supply increases price and an increase in the price of a…

Q: Q3:    Answer the following questions with the help of the table that shows the demand and supply…

A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Which of the following would cause an increase in the demand for natural gas, which would cause the…

A: When the price of substitute goods or related goods are increasing in the market then the demand for…

Q: You are told that the market price of coffee has increased and more coffee is being purchased in the…

A: Demand is the quantity of an item or service that consumers buy at various prices during a specific…

Q: If the price of sodium-sulfur batteries decreases, the price of lithium batteries will

A: Given: The price of sodium sulfur batteries decrease.

Q: if nothing else is changing. what will happen when the price for using golf courses falls ? A. more…

A: Answer: If the price of using golf courses falls then the demand for using gold courses will…

Q: If computers are like most goods and the price of computers chips fall, then holding all else…

A: Answer: A decrease in the cost of inputs leads to an increase in the supply of a good. As a result,…

Q: A clear explanation of factors affecting demand, and of the difference between a change in quantity…

A: Although economics focuses on the relationship between a product's price and how much buyers are…

Q: Which of the following events will increase the supply of sunscreen? If ________ and no other…

A: Given data, Change in supply  When the producers or output of the suppliers of a specific good or…

Q: Which of the following would not cause a decrease in the demand for bananas?  a. Reports surface…

A: The increase in the price of a commodity will decrease the demand of that commodity and vice versa.

Q: As Sandi's income rises, her demand for popcorn rises. As Mark's income falls, his demand for…

A: In an economy there exist certain types of goods that individuals consume based on their income,…

Q: What is the new equilibrium price for COC t-shirts (as a result of the decrease in the price of…

A: Market equilibrium price is that price where the market demand is equal to market supply. On the…

Q: Do you agreee that when the price of petrol rises, the demand for cars decreases.

A: The buyers are the entities, who interact with the sellers in the market and trade with them. The…

Q: How would each of the listed events affect the supply of compact cars? I. The price of steel rises.…

A: Supply curve shows combinations of price and quantity supplied of a good. It shows positive…

Q: Tea and coffee are substitutes. If the price of coffee decreases, what happens in the market for…

A: Substitute goods are those goods that cannot be used together. For example coca cola and Pepsi. If…

Q: For each of the following scenarios, determine if there is an increase or a decrease in supply for…

A: Since you have asked a multi-part question, and according to the policy, we can only solve the first…

Q: In the market for jeans, which of the following events increases the demand for a pair of jeans? А.…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Suppose hot dogs and mustard are complements in consumption. An increase in the supply of hot dogs,…

A: Answer: If hot dongs and mustards are complements then a decrease in the price of one good will lead…

Q: Explain why the following statement is false: “In the goods market, no buyer would be willing to pay…

A: Answer to the question is as follows:

Q: If the price of tamarind falls, there will be: an increase in the quantity demanded of tamarind. a…

A: The equilibrium price is the only cost where the aims of consumers and the aims of producers…

Q: For each of the following changes in the market for apples, explain why demand will increase,…

A: 1.  Here Apples and peanut butter are complimentary goods.  Complimentary goods : These are those…

Q: What happens to demand for normal goods when income of people decrease

A: Demand is the total goods and services that the consumers are willing to buy at different prices.

Q: Carefully explain why an increase in the price of commodity X will not result, ceteris paribus, in a…

A: In a market, there are various  determinants that influence the demand for a good such that income…

Q: What is the effect on the equilibrium price and quantity of orange juice of the following events if…

A: In general, when there is an excess supply of products or services, prices fall, resulting in…

Q: Will the equilibrium price of orange juice increase or decrease in each of the following situations?…

A: The demand for a commodity expresses the units of that commodity which the consumer desire to…

Q: kindly give the relevant term or concept A situation where the quantity supplied of a good is not…

A: "When quantity supplied of a good is less sensitive to a change in the price of the good this means…

Q: What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean…

A: Given: The wages of pickers fell The price of tea fell

Q: “As more people buy televisions, the demand for Cable services increases and the price of Cable…

A: Complementary services and goods is an item or administration that increases the value of another.…

Q: Which of the following might lead to an increase in the equilibrium price of jelly and a decrease in…

A: When the equilibrium point in a market for a product changes, it could mean that the product's…

Q: The relationship between quantity supplied and price is _____ and the relationship between quantity…

A: In a market, the consumers are the ones who demand goods and services and the producers are the ones…

Q: Which of the following may lead to a rise in the equilibrium price of iPhones and a fall in the…

A: Goods can be divided into substitute goods, complementary goods or they can be unrelated. Two goods…

Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.