ECON MACRO (with MindTap Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408738
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 4, Problem 3P
To determine
The various things that are held constant in a
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13. How shifts in demand and supply affect equilibrium
Consider the market for pens. Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch from
pencils to pens in school. Moreover, the price of ink, an important input in pen production, has dropped considerably.
On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens.
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
curve and it snaps back
to its original position, just drag it a little farther.
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)
[Choose the correct answer]
Which diagram illustrates the effects on the peanut butter market, if severe flooding destroys a large portion of the peanut crop in the economy?
Chapter 4 Solutions
ECON MACRO (with MindTap Printed Access Card) (New, Engaging Titles from 4LTR Press)
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- 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)arrow_forward8. 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_forward
- What are some general factors that can impact the demand for a product and the supply of a product? Identify at least two factors for each and explain the different ways these determinants can shift supply and demand either left or right.arrow_forward9. 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_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
- 8. 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_forwardi need in words (not handwritten please) Question 1 Suppose that the demand for toy drums is described by the equation QD = 300 - 5p, and supply is QS = 60 + 3p,(1) What are the equilibrium price and quantity? (2) If a decrease in consumer income shifted the demand curve to QD’ = 220 - 5p, how does this change affect the equilibrium price and quantity? Show the solutions using a graph and calculate the numerical answer.arrow_forwardWhat 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_forward
- 7. 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_forwardSuppose both the demand for olives and the supply of olives decline by equal amounts over some time period. Use graphical analysis to show the effect on equilibrium price and quantity. Instructions: On the graph below, use your mouse to click and drag the supply and demand curves as necessary. D1 Quantity of olives Price of olivesarrow_forward
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