4. From the above example, what would happen to the equilibrium price and quantity if the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
4. From the above example, what would happen to the equilibrium price and quantity if the number of sellers of Good Z increases in the economy? 5. Suppose tea and sugar complements to each other. The price of sugar goes down by 10% on the other hand production cost of tea goes up by 10%. Explain what will happen to the market of tea. 6. Let X and Y be substitute goods and price of X goes up by 25% followed by a 25% increase in government subsidy in the production of good Y. Analyze what will happen to the market of good Y. 7. Suppose market of Toyota Cars are initially at equilibrium. Now preference towards Toyota cars have gone up while government has imposed a restriction on imports of Toyota cars. Draw a diagram explaining how the market of Toyota cars will react due to these events given that Impact on the demand side is higher than on the supply side. 8. Consider the market of coffee which is currently in equilibrium. Assume that production cost of coffee goes up by 150% whereas number of buyers of coffee has increased by 20%. Explain how the equilibrium price and quantity will change following these events. 4. From the above example, what would happen to the equilibrium price and quantity if the number of sellers of Good Z increases in the economy? 5. Suppose tea and sugar complements to each other. The price of sugar goes down by 10% on the other hand production cost of tea goes up by 10%. Explain what will happen to the market of tea. 6. Let X and Y be substitute goods and price of X goes up by 25% followed by a 25% increase in government subsidy in the production of good Y. Analyze what will happen to the market of good Y. 7. Suppose market of Toyota Cars are initially at equilibrium. Now preference towards Toyota cars have gone up while government has imposed a restriction on imports of Toyota cars. Draw a diagram explaining how the market of Toyota cars will react due to these events given that Impact on the demand side is higher than on the supply side. 8. Consider the market of coffee which is currently in equilibrium. Assume that production cost of coffee goes up by 150% whereas number of buyers of coffee has increased by 20%. Explain how the equilibrium price and quantity will change following these events.
Expert Answer:
Answer rating: 100% (QA)
4As a result of the increase in the cost of raw materials needed to produce Z increases this will ca... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
What would happen to the equilibrium price and quantity exchanged in the following cases? a. An increase in income and a decreasing price of a complement, for a normal good b. A technological advance...
-
What will happen to the equilibrium price and quantity of beef if the price of chickenfeed increases?
-
What happens to the equilibrium price and quantity of ice cream in response to each of the following? Explain your answers. a. The price of dairy cow fodder increases. b. The price of beef decreases....
-
A certain university has decided to introduce the use of plus and minus with letter grades, as long as there is evidence that more than 60% of the faculty favor the change. A random sample of faculty...
-
A paint manufacturing company claims that the mean drying time for its paints is not longer than 45 minutes. A random sample of 20 gallons of paints selected from the production line of this company...
-
A laser used to weld detached retinas puts out 28-ms-long pulses of 640-nm light which average 0.68-W output during a pulse. How much energy can be deposited per pulse and how many photons does each...
-
Do people who are interested in environmental issues visit museums more often than people who are not? The General Social Survey asked 990 people how interested they were in environmental issues, and...
-
Milden Company is a distributor who wants to start using a contribution format income statement for planning purposes. The company has analyzed its expenses and developed the following cost formulas:...
-
On March 9 , 2 0 1 9 , Alpha Inc. purchased an equipment with a cost of HK$ 6 0 0 , 0 0 0 , a useful life of five years and no salvage value. The Company uses the straight - line method. Depreciation...
-
The adjusted trial balance columns of the worksheet for Eagle Company, owned by Jeff Spiegel, are as follows. Instructions (a) Complete the worksheet by extending the balances to the financial...
-
You have recently been appointed as the management accountant attached to the head office of the company with special responsibility of monitoring the performance of the companies within the group....
-
Consider the following information. Each fund is actively-managed. Year Wolverine Fund Manager Sara Frank Frank Frank Frank Buckeye Fund Manager Julie Julie Steve Steve Steve Wolverine fund Return...
-
Ms. Leslie Little is a full time architect. To help finance her various hobbies, she grows carrots for sale in a little plot next to her house. Although she has no farming background, in most years...
-
This week we learned about the courts, their operations and the different parties in litigation. Please use course, library and online means to find academic quality resources, then answer the...
-
Write the expression as a single logarithm. 3 logm W logmz+5logmx 2
-
What would be the consequence of implementing maximum punishment (death penalty) for all crimes, regardless of how severe they are? Would the crime rate increase or decrease? Would they become more...
-
The nurse is taking the health history of a 70-year-old patient being treated for a Duodenal Ulcer. After being told the patient is complaining of epigastric pain, the nurse expects to note which...
-
Currently, there are five concepts of food stands, including: hot dogs, soft pretzels, turkey legs, sandwich wraps, and funnel cakes. This approach will double the existing number of food stands...
-
Martha and Sarah have the same preferences and incomes. Just as Martha arrived at the theater to see a play, she discovered that she had lost the $10 ticket she had purchased earlier. Sarah also just...
-
Refer to Problem 6. Suppose Jack earns $1,000 per month and Jill earns $11,000 per month. a. Suggest a proportional tax on income that would be accepted by majority vote and would pay for the...
-
Using Okun's law, fill in the four pieces of missing data in the table below. The data are hypothetical. Real GDP Potential GDP Natural Year (s silions) (s silbions)ent unera rate (%) rate 2012 2013...
-
Design a voltage reference source as shown in Figure 9.42 to have an output voltage of \(12.0 \mathrm{~V}\). A Zener diode with a breakdown voltage of \(5.6 \mathrm{~V}\) is available. Assume the...
-
Design an op-amp summer to produce an output voltage of \(v_{O}=3 v_{I 1}+\) \(1.5 v_{I 2}+2 v_{I 3}-4 v_{I 4}-6 v_{I 5}\). The largest resistor value is to be \(250 \mathrm{k} \Omega\).
-
Consider the bridge circuit in Figure P9.87. The resistor \(R_{T}\) is a thermistor with values of \(20 \mathrm{k} \Omega\) at \(T=300 \mathrm{~K}\) and \(21 \mathrm{k} \Omega\) at \(T=350...
Study smarter with the SolutionInn App