Microeconomics For Today (MindTap Course List)
9th Edition
ISBN: 9781305507111
Author: Irvin B. Tucker
Publisher: Cengage Learning
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Chapter P2, Problem 4KC
To determine
The impact of setting the
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carefully explain what is happening in the market for tea. indicate the impact if any on demand, supply,price and quantity .coffee and tea are demand substitutes. coffee plantations increase the supply of coffee.
choose the suitable answer.
1) Impact on demand
a. decrease equilibrium quantity
b.excess supply
c. increase equilibrium quantity
d. decrease towards equilibrium
e.increase towards equilibrium
f. change in price in uncertain
g.decrease equilibrium price
h.excess demand
i. change in quantity uncertain
j.increase equilibrium price
k. no impact
l.shift outwards/ to right
m.shift inwards/to left
carefully explain what is happening in the market for tea. indicate the impact if any on demand, supply,price and quantity .coffee and tea are demand substitutes. coffee plantations increase the supply of coffee.
choose the suitable answer for QUESTION 2, 3 and 4.
Questions
2) impact on supply
3)impact on price
4)impact on quantity
Answers.
a. decrease equilibrium quantity
b.excess supply
c. increase equilibrium quantity
d. decrease towards equilibrium
e.increase towards equilibrium
f. change in price in uncertain
g.decrease equilibrium price
h.excess demand
i. change in quantity uncertain
j.increase equilibrium price
k. no impact
l.shift outwards/ to right
m.shift inwards/to left
carefully explain what is happening in the following market.indicate the impact if any on demand, supply price and quantity:
In the market for housing, house prices are expected to increase significantly in the neat future.
choose the suitable answer for question 1,2,3 &4
Questions:
1) impact on supply
2) impact on demand
3) impact on price
4) impact on quantity
Answer:
a. decrease equilibrium quantity
b.excess supply
c. increase equilibrium quantity
d. decrease towards equilibrium
e.increase towards equilibrium
f. change in price in uncertain
g.decrease equilibrium price
h.excess demand
i. change in quantity uncertain
j.increase equilibrium price
k. no impact
l.shift outwards/ to right
m.shift inwards/to left
Chapter P2 Solutions
Microeconomics For Today (MindTap Course List)
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Similar questions
- For a particular good, a 10 percent increase in price causes a 15 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good? A. There are no close substitutes for this good. B. The good is a necessity. C. The market for the good is broadly defined. D. The relevant time horizon is long.arrow_forwardWhich of the following would NOT decrease the demand for steak? A. a fall in the price of chicken (a substitute) B. a rise in the price of steak C. a rise in the price of potatoes (a complement) D. a decrease in consumer income (assume steak is a normal good) E. all of the above WILL decrease the demand for steak 10.arrow_forwardHow would you work this?arrow_forward
- a. Do you agree with the following statements? Explain your answers. i. The price of butter rises, causing the demand for another good to fall. This implies that the goods are substitutes. ii. During the pandemic, incomes fell for many Bahamians this change would likely lead to a decrease in the prices of both normal and inferior goods. iii. If the demand and supply of lobster increases at the same time price will rise. iv. The price of milk falls. This causes an increase in the price of good cheese. Therefore, milk and cheese are complements.arrow_forwardA taco hut is trying to determine its demand if it changes it's price. In 2019, they sold tacos for 1.00 and sold 6,000. In 2020, they increase the price of tacos to 1.50 and demand dropped to 5,500. In 2021, the owners of the taco hut want to increase taco price to 2.00 dollars. What would demand be for 2021? What if they lowered the price to .50, how much would demand be?arrow_forward#3arrow_forward
- 25. According to the following points on a demand curve, which would be the ideal price for a company to sell its product to get the maximum amount of revenue or total income before substituting cost? A. At $75, the quantity demanded per month is five. B. At $50, the quantity demanded per month is 10. C. At $100, the quantity demanded per month is two. D. At $25, the quantity demanded per month is 12.arrow_forwardQuestion 2 Full explain this question and text typing work only thanksarrow_forwarda. Is the quantity demanded higher or lower than at the equilibrium price? b. What about the quantity supplies? c. Is there a shortage in the market? If so, how much?arrow_forward
- Suppose the national institutes of health publishes a study finding that coffee drinking reduces the probability of getting colon cancer 1. How do you image this will affect the market of coffee? 2. Why 3, Which determinant of demand or supply is being affected? 4. How will the change of the equilibrium price and quantity of coffee? Explain your reasoningarrow_forwardIndicate how you think each of the following would shift demand in the indicated market: a. The incomes of buyers in the market for dining out decreases. The demand curve would|(Click to select) b. Buyers in the market for pizza read a study linking pepperoni consumption to clogged arteries. The demand curve would (Click to select) c. Buyers in the market for gas-powered cars learn of an increase in the price of electric cars (a substitute for gas-powered cars). The demand curve would (Click to select) d. Buyers in the market for electric cars learn of an increase in the price of electric cars. The demand curve would (Click to select)arrow_forwardSolve it early I upvote definitely. Both subparts a and b.arrow_forward
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