S1 S2 S3 B. Number of pizzas per week Figure 4: Price of Pizza Versus Number of Pizzas per week All the questions below are referring to Figure 4 and explain your answer 1. At equilibrium point B of the Supply Curve S2, explain what the impact of the increase in pizza sauce would be. 2. At equilibrium point B of the Supply Curve S2, explain what the impact would be if there was an industrial strike by the pizza workers union demanding a higher wage rate. Price of pizza

S1 S2 S3 B. Number of pizzas per week Figure 4: Price of Pizza Versus Number of Pizzas per week All the questions below are referring to Figure 4 and explain your answer 1. At equilibrium point B of the Supply Curve S2, explain what the impact of the increase in pizza sauce would be. 2. At equilibrium point B of the Supply Curve S2, explain what the impact would be if there was an industrial strike by the pizza workers union demanding a higher wage rate. Price of pizza

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 10PA

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Similar questions

Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. In each case, state how the event will affect the supply and demand diagram. Create a sketch of the diagram if necessary. Cars are becoming more fuel efficient, and therefore get more miles to the gallon. The winter is exceptionally cold. A major discovery of new oil is made off the coast of Norway. The economies of some major oil-using nations, like Japan, slow down. A war in the Middle East disrupts oil-pumping schedules. Landlords install additional insulation in buildings. The price of solar energy falls dramatically. Chemical companies invent a new, popular kind of plastic made from oil.
As a general rule, is it safe to assume that a change in the price of a good will always have its most significant impact on the quantity demanded of that good, rather than on the quantity demanded of miller goods? Explain.
What is the difference between the demand and the quantity demanded of a product, say milk? Explain in words and show the difference on a graph with a demand curve for milk.
What is the difference between the supply and the quantity supplied of a product, say milk? Explain in words and show the difference on a graph with the supply curve for milk.
Would you expect supply to play a more significant role in determining the price of a basic necessity like food or a luxury like perfume? Explain. Hint: Think about how the price elasticity of demand will differ between necessities and luxuries.
If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded of that product, will another 10 decrease in the price cause another 3 increase (no more and no less) in quantity demanded?
Table 3.9 illustrates the markets demand and supply for cheddar cheese. Graph the data and find the equilibrium. Next, create a table showing the change in quantity demanded or quantity supplied, and a graph of the new equilibrium, in each of the following situations: The price of milk, a key input for cheese production, rises, so that the supply decreases by 80 pounds at every price. A new study says that eating cheese is good for your health, so that demand increases by 20 at every price.
Use the four-step process to analyze the impact of the advent of the iPod (or other portable digital music players) on the equilibrium price and quantity of the Sony Wellman (or other portable audio cassette player).
Explain all the reasons why a decrease in a products price would lead to an increase in purchases.
If supply is inelastic, will shifts in demand have a larger effect on equilibrium price or on quantity?