Homework Help is Here – Start Your Trial Now!
Business
Economics
Short-answer questions 1. Lulu hypermarket orders 8,000 cases of Pepsi each week and sells them at a price of $5.00 per case. At the end of the month, they have sold 8,600 cases. a) What economic situation is Lulu facing (shortage or surplus)? Explain b) How price will change to get back to equilibrium? 2. Explain what will be the result of cheaper sugar used in production of cakes at Bread Talks. What factor is this? Draw the graph and show the change. 3. Discuss the results of an increase in the price of crude oil for production of petroleum. Discuss how supply and price of petroleum will be changed? What factor is this? Draw the graph and show the change.

Short-answer questions 1. Lulu hypermarket orders 8,000 cases of Pepsi each week and sells them at a price of $5.00 per case. At the end of the month, they have sold 8,600 cases. a) What economic situation is Lulu facing (shortage or surplus)? Explain b) How price will change to get back to equilibrium? 2. Explain what will be the result of cheaper sugar used in production of cakes at Bread Talks. What factor is this? Draw the graph and show the change. 3. Discuss the results of an increase in the price of crude oil for production of petroleum. Discuss how supply and price of petroleum will be changed? What factor is this? Draw the graph and show the change.

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 24P
See similar textbooks
icon
Related questions
Question
100%
its just short answer paper plz help me with it and thank youuu
Short-answer questions 1. Lulu hypermarket orders 8,000 cases of Pepsi each week and sells them at a price of $5.00 per case. At the end of the month, they have sold 8,600 cases. a) What economic situation is Lulu facing (shortage or surplus)? Explain b) How price will change to get back to equilibrium? 2. Explain what will be the result of cheaper sugar used in production of cakes at Bread Talks. What factor is this? Draw the graph and show the change. 3. Discuss the results of an increase in the price of crude oil for production of petroleum. Discuss how supply and price of petroleum will be changed? What factor is this? Draw the graph and show the change. 4. If the price of chicken increases, discuss the changes in the market demand for beef. What factor is this? Draw the graph and show the change. 5. The following table gives the information on daily supply and demand for Apple Juice at a sporting event: Price, S 2.10 1.80 1.60 1.40 1.20 Quantity demanded 800 1,600 2,400 3,200 4,100 Quantity supplied 7,200 4,800 2,400 1,600 950 a. What is the equilibrium price of juice? Explain b. If the organizers of the sporting event decide to set the price at 1.60, how many bottles of juice will be demanded, supplied? How many bottles of juice will be sold? 6. True or False? Explain. In economics, "inferior good" is the name for a good which is high quality and only rich people can afford buying. 7. State the Law of Demand. Discuss the relationship between Price of the good and its Quantity demanded. b. Over the last 10 years, price of new models smart Phones increased by 25%. At the same time, the number of sold phones has increased from 250KD to 400KD. Does this example demonstrate that the Law of Demand is false? Explain why or why not. Use graphs.
Transcribed Image Text:Short-answer questions 1. Lulu hypermarket orders 8,000 cases of Pepsi each week and sells them at a price of $5.00 per case. At the end of the month, they have sold 8,600 cases. a) What economic situation is Lulu facing (shortage or surplus)? Explain b) How price will change to get back to equilibrium? 2. Explain what will be the result of cheaper sugar used in production of cakes at Bread Talks. What factor is this? Draw the graph and show the change. 3. Discuss the results of an increase in the price of crude oil for production of petroleum. Discuss how supply and price of petroleum will be changed? What factor is this? Draw the graph and show the change. 4. If the price of chicken increases, discuss the changes in the market demand for beef. What factor is this? Draw the graph and show the change. 5. The following table gives the information on daily supply and demand for Apple Juice at a sporting event: Price, S 2.10 1.80 1.60 1.40 1.20 Quantity demanded 800 1,600 2,400 3,200 4,100 Quantity supplied 7,200 4,800 2,400 1,600 950 a. What is the equilibrium price of juice? Explain b. If the organizers of the sporting event decide to set the price at 1.60, how many bottles of juice will be demanded, supplied? How many bottles of juice will be sold? 6. True or False? Explain. In economics, "inferior good" is the name for a good which is high quality and only rich people can afford buying. 7. State the Law of Demand. Discuss the relationship between Price of the good and its Quantity demanded. b. Over the last 10 years, price of new models smart Phones increased by 25%. At the same time, the number of sold phones has increased from 250KD to 400KD. Does this example demonstrate that the Law of Demand is false? Explain why or why not. Use graphs.
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cash Flow
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Microeconomics: Private and Public Choice (MindTa…
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Microeconomics
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS