What will happen to the supply and demand curve, equilibrium price and quantity of boots if price of leather used for making the shoes rises? supply curve shift rightward; demand curve the same; equilibrium price increases; equilibrium quantity decreases supply curve shift rightward; demand curve shifts leftward; equilibrium price increases; equilibrium quantity decreases supply curve shift leftward; demand curve the same; equilibrium price increases; equilibrium quantity decreases supply curve shift leftward; demand curve shifts leftward; equilibrium price increases; equilibrium quantity decreases

What will happen to the supply and demand curve, equilibrium price and quantity of boots if price of leather used for making the shoes rises? supply curve shift rightward; demand curve the same; equilibrium price increases; equilibrium quantity decreases supply curve shift rightward; demand curve shifts leftward; equilibrium price increases; equilibrium quantity decreases supply curve shift leftward; demand curve the same; equilibrium price increases; equilibrium quantity decreases supply curve shift leftward; demand curve shifts leftward; equilibrium price increases; equilibrium quantity decreases

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 25P

See similar textbooks

Similar questions

a) i)Explain difference between; ii,Microeconomics and macroeconomics iiiPositive and Normative economics b) Given the following demand and supply functions as; i)Find the price elasticity of demand and price elasticity of supply at the equilibrium point. ii)Based on the values obtained from Price elasticity of supply in (i) above, what advice would you give to the producer if he is to increase revenue? iv)Using illustrations, distinguish between Minimum and maximum price v)Assuming the government, set the price at 45shs, determine whether its minimum or maximum price, and state the surplus or deficit
The market for pizza has the following demand andsupply schedules:Price Quantity Demanded Quantity Supplied$4 135 pizzas 26 pizzas5 104 536 81 817 68 988 53 1109 39 121a. Graph the demand and supply curves. What arethe equilibrium price and quantity in this market?b. If the actual price in this market were above theequilibrium price, what would drive the markettoward the equilibrium?c. If the actual price in this market were below theequilibrium price, what would drive the markettoward the equilibrium?
Consider the market for plywood in a costal Florida town, which was hit by a hurricane. The residents need to rebuild their houses and are buying plywood in large quantities. To keep the price of plywood from going up too high, the Governor of Florida has decided to impose price controls in the wake of the hurricane. What is the most likely outcome?a. People will be able to obtain the plywood that they need. b. Plywood suppliers from out of state will increase deliveries to Florida to take advantage of the strong demand. c. There will be persistent excess demand for plywood. d. Quantity supplied will increase to meet new demand.
Equilibrium price or market clearing price is theprice whereSelect one:a. Demand and supply curves interactO b. Price ceiling is imposed0 C. Government fixes the pricesO d. Buyer forced seller
Assume that the markets for sugar cane, rum and whiskey are initially in equilibrium (i.e., supply equals demand in each case). Assume further that a good harvest impacts the world’s sugar cane crop. Sugar cane is a principal ingredient in rum, but it is not an ingredient in whiskey. Rum and whiskey are substitutes in consumption. Discuss the impact of the good harvest on each of the three markets. Discuss the effect on the markets for each of the three products if the government implements a price restriction in the sugar cane market with the aim of protecting the farmers. How will this impact the revenues for sugar growers, rum producers and whiskey producers?
Suppose that in the citrus market, while the amount of production decreased due to cold winter conditions, consumers' desire to drink citrus juice increased in order to strengthen their immunity due to the COVID-19 epidemic. In this case, how is the equilibrium price and quantity affected in the citrus market? Evaluate this with the help of the figure for the case where the supply curve shifts more than the demand curve. (Note: Do not forget to write the names of the axes while drawing the figure. Show clearly the supply-demand curve and the market equilibrium point in the first case and the supply-demand curve and equilibrium point after the shift.)
Work from home and stay home restrictions impacted the market of many household items, with discussions about toilet paper and even international news. a)what impact did covid 19 restrictions have on the market of toilet paper? explain using a supply and demand diagram. b) states enacted policies that prevent price gouging during the pandemic. explain the impact of this policy on the market
warring ( i just want the answer for C ) A- Given the following two equations:Qd = 150 – 3PQs = 70 + 2P Calculate the equilibrium price and the equilibrium quantity. Show all your work.B- Using the above two equations to find the values of Qd, Qs, the market situation (Shortage/Surplus/Equilibrium), and the Value of shortage or surplus if any, at the following prices.10, 15,20 and 25. C-If the consumer income increases by 20%, what will happen to the equilibrium price and quantity. warring ( i just want the answer for C )
Although 23 states barred the sale of self-service gasoline in 1968, most removed the bans by themid 1970s. By 1992, self-service outlets sold nearly 80% of all US gas, and only New Jersey andOregon continued to ban self-service sales. Using predicted values for self-service sales for NewJersey and Oregon, Johnson and Romeo (2000) estimated that the ban in those two states raisedthe price of gasoline by somewhere between 3¢ and 5¢ per gallon. Why did the ban affect theprice? Illustrate using a figure and explain. Show the welfare effects in your figure.
Normally, the people of COVID-FREE LAND demand of 3000 sanitizers and 18000 toilet rolls. Suddenly, there is outbreak of covid-19 and demand for sanitizers and toilet rolls increased to 4,000 and 20,000 respectively. How could COVID-FREE land meets its new demand. Identify and comprehensively discuss at least three possibilities or ways.
) Draw a diagram showing a market for milk with the equilibrium price of $5/gallon. (ii) If diary farmers complain to the government that the price of $5/gallon is too low and demand that the government impose a price control to help them, what form of price control are they expecting? What will happen in the market if such form of price control is imposed, all else equal? Explain with the help of an appropriate diagram to support your response. (iii) If milk consumers complain that the price of $5/gallon is too high and demand that the government impose a price control to help them, what form of price control are they expecting? What will happen in the market if such form of price control is imposed? Explain with the help of an appropriate diagram to support your response.
Assuming hypothetical equilibrium in Demand/Supply Model of Apples, illustrate impact of following events:Suppose the Doctors recommend eating Apples every morning. The Monsoon rains adversely affect the Apple Harvest. The government announces increase in Wages of workers. The price of petrol in the market comes down. Consumers Income falls during government imposed Lockdowns due to health concerns. Given below is the Supply Schedule of Nestle Milk per liter:Price of Milk per liter (in Rs) 100 200 300 400Quantity Supplied per day in liters (in 1000s) 100 200 300 400Use the above data to illustrate the Supply Curve in a graph with complete labels. Assume Rs. 200 is the original price of milk per liter and 200,000 liters is the original quantity of supply. Suppose the price rises from Rs. 200 to Rs. 300, what will be the amount of Quantity Supplied?Illustrate the impact of (C) on the graph. Is this a movement along the supply curve or shift of the curve?