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1. What Will Happen to QD, QS, D, S, P, and Q if Toyota, GM, and Ford increase production of windshields due to higher
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- Why expectation for future prices is one of the factors that can affect supply?Expectations about price changes will affect A) the demand curve only. B) both the demand and supply curves. C) the supply curve only. D) neither curve.Expectations about price changes will affect:A) the demand curve only. B) both the demand and supply curves.C) the supply curve only. D) neither curve.
- If the future price of oil is expected to be lower than the current price both consumers and producers of crude oil expect crude oil prices to decrease in the near future show and explain the impact of these expectations on the market for crude oil, ceteris paribus?Question 4 . Changes in prices can be attributed to shifts in the supply curve, the demand curve, or both. In this module we learned several variables that can shift the curves (price of related goods, changes in expectations, etc.) According to the Hoffower article, what variable is likely to be the cause of increased college tuition from the demand side? What variable on the supply side?4) An increase in demand will lead to an increase in “supply” and an increase in “quantity supplied.” (Be sure to address both “supply” and “quantity supplied.”) Is this true, false, or uncertain? Explain.
- 2. 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. a. People decide to have more children. b. A stock market crash lowers people’s wealth.Question For each sentence below describing changes in the tangerine market, discuss whether the statement is true, false, or uncertain. Justify your answer. (You will find it helpful to draw a graph for each case.) • If consumers’ income increases, and the wage of the laborers in the industry falls, the quantity purchased in the market will rise and the price will fall. • If orange prices decrease, and a new agro-chemical increases the productivity of tangerine trees, the quantity will fall and the price will rise. • If the price of canning machinery (a complement) increases, and the growing season is unusually cold, both quantity and price will fall.When the covid-19 shock started in early 2020, supermarkets quickly ran out of toilet paper as panic buying took place and its price remained the same. Illustrate these effects using a well-labelled supply and demand graph and explain the outcome
- 2.) If both demand and supply decrease at the same time this will cause _______ in equilibrium quantity and _____ in equilibrium price. Select one: a decrease; an uncertain change b. an uncertain change; an increase c. an increase; an uncertain change d. an uncertain change; a decrease 3.) Jon works as a carpenter part-time. That is his only job. He would prefer to have a full-time job but has been unable to find one. According to Statistics Canada, Jon is classified as: Select one: a. unemployed b. employed c. not part of the labour for d. a discouraged workerWhich of the following statements are false? A. The absolute price of a hood is the dollar or money price of the good. B. Firms may not adjust their prices immediately because they may be unable to figure out whether a decline in demand is temporary or permanent. C. Some prices in an economy, adjust faster than other prices. D. Aggregate demand curves slope downward.Consider the market supply for pizza, indicate a movement along the supply curve for pizza or a shift along the supply curve for pizza. 1. Increase in pizza? 2. A change in technology that makes it more costly to produce pizza? 3. A change in expectations about the future price of pizza?