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- Evaluate the effect of changes in supply and demand on theequilibrium price and quantity.suppose the price of orange juice rises and the apples falls. what would you expect ti happen to the price and quantity of apple juice? why would the equilibrum quanity increase while the impact onbthe equilbrum price be uncertain?With regard to demand and Supply, explain the point of MarketEquilibrium
- 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?Draw the supply and demand curves based on the following schedules.Price Quantity Demanded Quantity Supplied$10 100 0$12 80 20$14 60 40$16 40 60$18 20 80$20 0 100 a. What is the market equilibrium price? b. From the Keynesian view, what condition will prevail at the price of $12?How about from the Classical view? c. Why Keynesians believe markets usually do not clear? d. Why Keynesians believe economies usually operate below their productionpossibilities frontierThe demand for pizza is given by Qd" = 85 − 0.4P where Qd " is the quantity demanded in slices and P is the price per slice. The supply of pizza is given by QS+ = 55 + 0.6P. Calculate the equilibrium price and equilibrium quantity of pizza . Calculate the demand and supply for pizza if the market price is $15 per slice. What problem exists in the economy? What would you expect to happen to price? b. As more people buy televisions, the demand for Netflix increases and the price of Netflix decreases. The fall in the price of Netflix decreases the supply of Netflix.” Explain what is wrong with this statement.
- Assume that you are able to determine that the equilibrium price for a good will definitely decrease, and the equilibrium quantity will definitely increase. Which of the following MUST have occurred for you to be able to make these conclusions?a. Demand decreased and supply decreasedb. Demand increased.c. Demand decreased and supply increased.d. Demand increased and supply decreased.e. Supply increased. When demand and supply both change in the same direction (for example, they both decrease), the change in the equilibrium quantity can be predicted with certainty.a. Trueb. False Consider the market for wood flooring. The economic downturn has caused many firms selling wood flooring to go out of business. At the same time, consumers are expressing a preference for wood flooring over alternatives like carpet and tile. Based on this information, what would you expect to happen to the price of wood flooring?a. The price will definitely stay the same.b. More information is needed to…find marketequilibrium price for quantity for a good that has the following supply and demand functions. Supply Ps=Q^2+20q Demand Pd=-2q^2+10q+15400What will happen to the equilibrium price and quantity of pens if the price of pencils rises, consumers experience an increase in income, writing in ink becomes fashionable, people expect the price of pens to rise in the near future, the population increases, fewer firms manufacture pens, and the wages of pen-makers increase? a. Equilibrium quantity would decrase, but the impact on equilibruim price would be ambiguous. b. Equilibruim price would increase, but the impact on equilibruim quantity would be ambigious. c. Equilibrium quantity would incrase, but the impact on equilibruim would be ambiguous d. Equilibrium price increases and equilibruim quantity decreases e. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
- 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 workerIllustrate and explain how the market for milk in the US economy will maintain equilibrium over time given the problem that will exist with current demand conditionsA stock market bust leads to a decrease in wealth in the economy. What happens to equilibrium price and RGDP in the economy? 1) Equilibrium price and equilibrium RGDP increase. 2) Equilibrium price and equilibrium RGDP decrease. 3) Equilibrium price will rise and equilibrium RGDP will fall. 4) Equilibrium price will fall and equilibrium RGDP will rise.