(NOTE: Answer each question by providing "one" diagram with a concise explanation.)%3D6. Assume good "M" and good "N" are complementary. What happens to the equilibrium price andquantity of good "N" if the price of good "M" decreases?7. Assume the PC makers develop more efficient methods to make a computer. What happens to theequilibrium price and quantity of the computer?..docxanswerstohomew...docxanswerstohomew...docxe to searcho 耳0W.

Hi. Since there are two questions, we will answer the first one. Complementary goods can be of…

(NOTE: Answer each question by providing "one" diagram with a concise explanation.) 6. Assume good "M" and good "N" are complementary. What happens to the equilibrium price and quantity of good "N" if the price of good "M" decreases?

(NOTE: Answer each question by providing "one" diagram with a concise explanation.) 6. Assume good "M" and good "N" are complementary. What happens to the equilibrium price and quantity of good "N" if the price of good "M" decreases?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 2TY

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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.
THIS IS FOR MATHEMATICAL ECONOMIC : Question (2): The market for disposable cell phones: Q = 2300 – 16p and Q = 1850 + 14p. Find the equilibrium price and quantity. Suppose that a new technology has emerged that will enable firms to mass produce the cell phones at a reduced cost. Which curve will be affected and what will be the general outcome? Going back to question (b), if the new equilibrium price of a disposable cell phone is $11.25, how many disposable cell phones will be demanded by consumers? Derive the new function based on your analysis. Suppose that more consumers prefer the disposable cell phone over the smart phone because the disposable cell phone is more durable than the smart phone. This latest news comes after the fact that firms that manufacture disposable cell phones have the latest technology integrated into their production facilities. What will be the market effect? Going back to question (d), suppose that the price of a disposable cell phone is now set at…
i need in words (not handwritten please) Question 1 Suppose that the demand for toy drums is described by the equation QD = 300 - 5p, and supply is QS = 60 + 3p,(1) What are the equilibrium price and quantity? (2) If a decrease in consumer income shifted the demand curve to QD’ = 220 - 5p, how does this change affect the equilibrium price and quantity? Show the solutions using a graph and calculate the numerical answer.
"Assume that the price of crisps rises while the equilibrium quantity falls. Explain in each of the following cases whether they are true, false or uncertain and argue with respect to the statement made: a. An increase in the price of onion rings (a substitute for potato crisps) b. A fall in the price of onion rings. c. An increase in the price of potato bread (production-side substitute for potato crisps). d. A fall in the price of potato bread.
1. At a price of $4.61 per pound, the supply for cherries is 16,107 pounds, and the demand is 10,362 pounds. When the price drops to $4.18 per pound, the supply decreases to 10,789 pounds and the demand increases to 12,724 pounds. Assume that the price-supply and price-demand equations are linear. What is the equilibrium price? 2. At a price of $4.97 per pound, the supply for cherries is 16,172 pounds, and the demand is 10,336 pounds. When the price drops to $4.24 per pound, the supply decreases to 10,790 pounds and the demand increases to 12,668 pounds. Assume that the price-supply and price-demand equations are linear. What is the equilibrium quantity? Round to the nearest pound.
Please no written by hand and no image Suppose that both groups of students are on the right track, and each of the events described above are partially responsible for the decrease in the price of chicken wings. Based on your analysis of the explanations offered by the two groups of students, how would you determine which of the possible causes was the dominant cause of the decrease in the price of chicken wings? If the equilibrium quantity of chicken wings decreases, then the supply shift in the market for chicken wings must have been larger than the demand shift. If the equilibrium quantity of chicken wings decreases, then the demand shift in the market for chicken wings must have been larger than the supply shift. If the price decrease was small, then the supply shift in the market for chicken wings must have been larger than the demand shift. Whichever change occurred first must have been the primary cause of the change in the price of chicken wings.
The market for cellular phones has seen a combination of improving telecommunication technology and rising consumer incomes. Suppose you are told that the price of cellular phones decreased over the past five years. The decreasing prices of cellular phones, a normal good, implies that the magnitude of: A. he rightward shift of the demand curve is greater than that of the rightward shift of the supply curve B. The leftward shift of the demand curve is greater than that of the rightward shift of the supply curve C. The rightward shift of the demand curve is less than that of the rightward shift of the supply curve D. The rightward shift of the demand curve is less than that of the leftward shift of the supply curve
can you answer these questions too: Suppose that more consumers prefer the disposable cell phone over the smart phone because the disposable cell phone is more durable than the smart phone. This latest news comes after the fact that firms that manufacture disposable cell phones have the latest technology integrated into their production facilities. What will be the market effect? Going back to question (d), suppose that the price of a disposable cell phone is now set at $11.75. How many disposable cell phones will be demanded by consumers? Whichever curve you’ve determined should be shifted, derive the new function.
NOTE: You should answer each question by providing “(only) one” relevant diagram. 1. The economy falls into recession and consumer incomes decrease. What happens to equilibrium price and quantity of grape? 2. The price of “CD” changes from $2 to $1.50. What happens to equilibrium price and quantity of “CD player”? (NOTE: we may call “CD” and “CD player” are complementary goods.) 3. The price of Coca-cola decreases. What happens to equilibrium price and quantity of "Pepsi"? (NOTE: we may call “CD” and “CD player” are substitute goods.)
Question 1 Suppose the market demand for pizza is given by Qd = 300 - 20P and the market supply for pizza given by Qs = 20P – 100 Graph the supply and demand for pizza using $5 through $15 as the value of P. In equilibrium, how many pizzas would be sold, and at what price? What would happen if suppliers set the price of pizza at $15? Explain the market adjustment process. Suppose the price of hamburgers, a substitute for pizza, doubles. This leads to a doubling of the demand for pizza (at each price consumers demand twice as much pizza as before). Write the equation of the new market demand for pizza. Find the new equilibrium price and quantity for pizza. If the price of Pizza is $2 what is the elasticity of demand and supply for pizza? Now if the price increases to $5 calculate the demand and supply elasticities.
Assume that supply for cars increases for any given price and, at the same time, the demand for cars reduces for any given price. You can predict: a. That the price of cars will unambiguously increase, while the car sales may increase or decrease. b. That car sales will unambiguously decrease, while the car price may increase or decrease. c. That the price of cars will unambiguously decrease, while the car sales may increase or decrease. d. That car sales will unambiguously increase, while the car price may increase or decrease.
Consider each scenario independently. In each of the following cases tell me, using verbal and graphical analysis (d) What will happen in the market for tomatoes if a new study is released that shows tomatoes contain antioxidants (may help prevent cancer)? (e) What will happen in the market for corn if a new crop rotation technique is discovered that allows the corn to be grown more easily and the price of green beans, a substitute, decreases? (f) What will happen in the market for gasoline if the price of oil increases and there is a vast increase in the population (e.g., another baby boomer generation)? (g) A tax on gun buyers. (h) A binding price floor on guns.