ECON: MACRO4
4th Edition
ISBN: 9781305436862
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 4, Problem 2.3PA
To determine
The various things that are held constant in a
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9. Shifts in supply or demand II
The following graph shows the market for hot dogs in San Diego, where there are over 1,000 hot dog stands at any given moment. Suppose the price
of sausage casing, a major ingredient in hot dogs, suddenly increases.
Show the effect of this change on the market for hot dogs by shifting one or both of the curves on the following graph, holding all else constant.
Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back
to its original position, just drag it a little farther.
PRICE (Dollars per hot dog)
I
I
I
I
QUANTITY (Hot dogs)
Supply
Demand
Demand
D
Supply
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9. Shifts in supply or demand II
The following graph shows the market for hot dogs in Detroit, where there are over 1,000 hot dog stands at any given moment. Suppose the price of
sausage casing, a major ingredient in hot dogs, suddenly increases.
Show the effect of this change on the market for hot dogs by shifting one or both of the curves on the following graph, holding all else constant.
Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back
to its original position, just drag it a little farther.
Supply
Demand
Supply
Demand
QUANTITY (Hot dogs)
PRICE (Dollars per hot dog)
11. Shifts in supply or demand I
The following graph shows the market for hot dogs in Vancouver, where there are more than a thousand hot dog stands at any given moment.
Suppose a new scientific study shows that Vancouver is the most polluted city in the world. Due to health concerns, a significant number of families
move out of the city.
Show the effect of this change on the market for hot dogs by shifting one or both of the curves on the following graph, holding all else constant.
Supply
Demand
Supply
Demand
QUANTITY (Hot dogs)
PRICE(Dollars per hot dog)
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Similar questions
- 8. Shifts in supply or demand I The following graph shows the market for donuts in Dallas, where there are over 1,000 donut shops at any given moment. Suppose a new scientific study shows that Dallas is the most polluted city in the world. Due to health concerns, a significant number of families move out of the city. Show the effect of this change on the market for donuts by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per donut) QUANTITY (Donuts) Supply Demand Demand If donuts are a normal good, this will cause the demand for donuts to 0 Supply ? Now suppose Congress passes a new tax that decreases the income of Dallas residents.arrow_forward“A household’s decision about what quantity of a particular output, or product to demand depends on a number of factors.” Discuss the major factors affecting the demand. write in your own word as much as you canarrow_forward4. Study Questions and Problems #4 The following graph shows the supply curve for condominiums in a large city. Assume that all condos are identical and sell for the same price. Initially, the graph shows market demand under the following circumstances: Average excise taxes are 15% per year, and the price of business parks is $1,000,000. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. (Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.) PRICE (Thousands of dollars) 500 450 400 350 300 250 200 150 - 100 50 0 0 Supply for Condominiums Supply 20 40 60 80 100 120 140 160 180 200 QUANTITY (Condos built per year) Graph Input Tool Supply of Condominiums Price of a Condo (Thousands of dollars) Quantity Supplied (Condos per year) Supply Shifters Taxes (Percent) Price of a Business Park (Millions of dollars) Suppose that the price of a…arrow_forward
- 9. Shifts in supply or demand II The following graph shows the market for cakes in Miami, where there are over 1,000 bakeries at any given moment. Suppose the price of flour, a major ingredient in cakes, suddenly decreases. Show the effect of this change on the market for cakes by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. Supply Demand Supply Demand QUANTITY (Cakes) PRICE (Dollars per cake)arrow_forward8. Shifts in supply or demand I The following graph plots the market for scones in Houston, where there are always over 1,000 bakeries, Suppose the price of donuts increases. (Assume that people regard scones and donuts as substitutes.) Show the effect of this change on the market for scones by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dolars per scone) Supply Demand Demand 1 Supply ?arrow_forwardOnly typed answer If the demand in a market is Q = 63 – 4P and the supply is Q = -3 + 3P, then what is the equilibrium price (rounded to two decimal places)?arrow_forward
- What is the reason that a supply curve is positively sloped? If the price of corn rose, a) What would be the effect on the supply of corn? b) What would be the effect on the supply of wheat? The following table shows the supply schedule for Rolling Rock Oil Co. Plot Rolling Rock’s supply curve on a graph. Price (dollars per barrel) Quantity Supplied (barrels per month) $5 10,000 10 15,000 15 20,000 20 25,000 25 30,000arrow_forward7. Shifts in supply or demand II The following graph plots the market for scones in Denver, where you can assume there are always over 1,000 bakeries. Suppose scone sellers expect that tomorrow the price of scone will be significantly higher than today's price. Show the effect of this change on the market for scones by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per scone) QUANTITY (Scones) Supply Demand Demand 1 Supply ?arrow_forward6. Shifts in supply or demand I The following graph shows the market for hot dogs in Philadelphia, where there are over a thousand hot dog stands at any given moment. Suppose the Surgeon General issues a public statement saying that consuming hot dogs is bad for your health. Show the effect of this change on the market for hot dogs by shifting one or both of the curves on the following graph, holding all else constant. Supply X Demand QUANTITY (Hot dogs) PRICE (Dollars per hot dog) Demand Supply (?) Grade It Now Save & Continue Continue without savingarrow_forward
- 5.01 EC11_Effect on Supply and Demand WS VPN 11% Done EFFECTS ON SUPPLY AND DEMAND Directions: Event #1: Listed below are 10 events which could have some influence on the supply and demand of a product. On a clean sheet of paper, clearly label each event and record your answers. Read each of these events, and decide which factors that affect either consumers or sellers (utility, buying power, price of other goods and services, consumers, cost of production, number of producers, future prices, disasters and emergencies, government, or technology) (use I for each "event") are represented. You will also need to identify which group (consumers or sellers) it would influence. Event #2: A company introduces a new product intended to help college students improve their ability to take tests. The corn crop in one state was damaged by heavy rains and floods. Event #3: One pair of jeans looks the same as another pair but costs much less. Event #4: A candy manufacturer gives large pay increases…arrow_forward9. Shirts in supply or demana 11 The following graph shows the market for croissants in San Diego, where there are over 1,000 bakeries at any given moment. Suppose an innovation in the baking process makes it possible to produce more croissants at a lower cost than ever before. Show the effect of this change on the market for croissants by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per croissant) QUANTITY (Croissants) Supply Demand Demand T Supply ?arrow_forward6. Shifts in supply or demand I The following graph shows the market for cereal in Detroit, where there are over a thousand stores that sell cereal at any given moment. Suppose the price of breakfast bars increases. (Assume that people regard cereal and breakfast bars as substitutes.) Show the effect of this change on the market for cereal by shifting one or both of the curves on the following graph, holding all else constant. PRICE (Dollars per box) QUANTITY (Boxes) Supply Demand Demand 0 Supplyarrow_forward
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