QUESTION 36A rightward shift in the demand curve for tennis balls could be caused bya. a fall in the price of tennis rackets.b.a fall in income, assuming tennis balls are a normal good.C. a fall in the price of tennis balls.d. a rise in the price of tennis lessons.QUESTION 37An early frost in the vineyards of Napa Valley would cause a(n)a. decrease in the demand for wine, decreasing price.b. increase in the demand for wine, increasing price.c. decrease in the supply of wine, increasing price.d. increase in the supply of wine, decreasing price.

36. Recall that a rightward shift in demand curve is caused by an increase in demand. Now, a fall…

Answered: QUESTION 36 A rightward shift in the…

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

Problem 5CQQ

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Subject: Business Economics Draw a demand curve for music downloads What happens to it in each of the following scenarios? Why? A.The price of iPods falls (mention figure on graph) B.The price of music downloads falls (mention figure on graph) C.The price of music CDs falls (mention figure on graph)
In graph 3 a higher price results in a higher quantity, in graph 4 a lower price results in a lower quantity. This means the "law of demand" is disproven. Do you agree? Why or why not?
Suppose that scientists find evidence that proves tattoos improve the body’s immune system. What would we expect to see? A. a decrease in the demand for tattoos B. no change in the demand for tattoos C. an increase in the demand for tattoos D. a decrease in the supply of tattoos
MULTIPLE CHOICE (identify the one best answer below and explain your reasoning for eachoption): If the economy experiences a boom and incomes rise substantially, what happens in themarkets for both normal and inferior goods?a. In both markets, prices fall, quantities rise.b. In both markets, prices and quantities both fall.c. In both markets, prices rise, quantities fall.d. In one market both prices and quantities rise, in the other both prices and quantities fall.e. None of the above.
1. These are factors affecting the supply to increase and decrease, except one. A. Technology C. Producers Tastes B. Producer Preferences D. Consumer preferences 2. These are factors affecting the demand to increase and decrease, EXCEPT one. A. Raw materials C. Consumer Tastes B. Producer Preferences D. Price of related goods
1. New advances in recycling technology reduce the cost of producing paper made from recycled material. SELECT THE CORRECT ANSWER 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
1. The Smith family eats both meat and potatoes on a regular basis and we need to know how the family views these goods. If the price of meats rises and the family eats more potatoes, then the two goods must be a. Substitutes b. Complements c. Inferior d. Normal 2. Which of the following is not a determinant of Supply? a. Prices of resources b. Technology and productivity c. Prices of Complements d. Producers’ expectations e. The number of producers 3. In December, both the price of Christmas trees and the quantity of trees sold rises. Is this a violation of the Law of Demand? Explain your answer 4. Explain the following statement in terms of Supply and Demand: “When a war breaks out in the Middle East, the price of gasoline rises and the price of a used Cadillac falls”.
Q3. If price of tomato sauce/ French fries falls what happens to equilibrium price and quantity of pizza? (Tomato sauce = complementary good )
Suppose during a summer , unexpected rains and subsidized fertilizers allows the crop of sugar cane to be higher than usual. This leads to increased supply of sugar in the market economy.Considering this scenario, answer the questions a) How this event affects the price of Sugar? b) If sugar and ice cream are compliments then how the supply of ice cream would be affected? c) Keeping the conditions of part (b), Explain whether there is a shift or movement in supply curve of ice cream d) As a result of increased supplies of sugar, whether there is a shortage or ice cream or surplus of ice cream in the market economy and why? e) If the new equilibrium is formed, what happened to new price and new quantity? whether they are different from previous values of equilibrium quantity and equilibrium price or not? Regards....
Need help with supply and demand homework questions a) In the 1964 movie, Goldfinger, James Bond takes on the notorious gold smuggler and jeweller Auric Goldfinger. Goldfinger’s evil plan involves destroying the United States of America’s biggest stock of gold at Fort Knox, hence making Goldfinger wealthier. According to supply and demand, why does Goldfinger’s plan make sense? Explain, using a diagram. b) A drought destroys many coffee plants. How does this affect the market for coffee? Explain using a diagram

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