Answer all parts to this question. Part i) Determine the impact of each of the following...
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Answer all parts to this question. Part i) Determine the impact of each of the following events on the market for the products below shown in italics. For each event show the impact on the Demand or the Supply, Equilibrium Price and the Equilibrium Quantity (i.e. increase or decrease, or no change in Demand or Supply, increase or decrease in equilibrium price and equilibrium quantity or indeterminate). Also, explain which determinant of demand or supply is causing the change. (6.5 marks) • Tires. Two major tire businesses go bankrupt and exit the market • Gas. Due to Covid economy is shut down and most people are working from home • Apple iPhone. A serious defect in the iPhone battery and new improved technology in iphone production. S Co 40 ENG Part ii) The following table sets the demand and supply schedules for gum (3.5 marks) Price (cents per gum) Quantity Demanded (packs/week)__ 180 140 20 40 90 Quantity Supplied (packs/week) 60 60 60 80 a) If the price of gum is 40cents a pack, describe the situation in the gum market. Explain how the price adjusts. b) If the price of gum 80cents a pack, describe the situation in the gum market. Explain how the price adjusts. c) What is the market equilibrium ? 80 90 120 Answer all parts to this question. Part i) Determine the impact of each of the following events on the market for the products below shown in italics. For each event show the impact on the Demand or the Supply, Equilibrium Price and the Equilibrium Quantity (i.e. increase or decrease, or no change in Demand or Supply, increase or decrease in equilibrium price and equilibrium quantity or indeterminate). Also, explain which determinant of demand or supply is causing the change. (6.5 marks) • Tires. Two major tire businesses go bankrupt and exit the market • Gas. Due to Covid economy is shut down and most people are working from home • Apple iPhone. A serious defect in the iPhone battery and new improved technology in iphone production. S Co 40 ENG Part ii) The following table sets the demand and supply schedules for gum (3.5 marks) Price (cents per gum) Quantity Demanded (packs/week)__ 180 140 20 40 90 Quantity Supplied (packs/week) 60 60 60 80 a) If the price of gum is 40cents a pack, describe the situation in the gum market. Explain how the price adjusts. b) If the price of gum 80cents a pack, describe the situation in the gum market. Explain how the price adjusts. c) What is the market equilibrium ? 80 90 120 Answer all parts to this question. Part i) Determine the impact of each of the following events on the market for the products below shown in italics. For each event show the impact on the Demand or the Supply, Equilibrium Price and the Equilibrium Quantity (i.e. increase or decrease, or no change in Demand or Supply, increase or decrease in equilibrium price and equilibrium quantity or indeterminate). Also, explain which determinant of demand or supply is causing the change. (6.5 marks) • Tires. Two major tire businesses go bankrupt and exit the market • Gas. Due to Covid economy is shut down and most people are working from home • Apple iPhone. A serious defect in the iPhone battery and new improved technology in iphone production. S Co 40 ENG Part ii) The following table sets the demand and supply schedules for gum (3.5 marks) Price (cents per gum) Quantity Demanded (packs/week)__ 180 140 20 40 90 Quantity Supplied (packs/week) 60 60 60 80 a) If the price of gum is 40cents a pack, describe the situation in the gum market. Explain how the price adjusts. b) If the price of gum 80cents a pack, describe the situation in the gum market. Explain how the price adjusts. c) What is the market equilibrium ? 80 90 120 Answer all parts to this question. Part i) Determine the impact of each of the following events on the market for the products below shown in italics. For each event show the impact on the Demand or the Supply, Equilibrium Price and the Equilibrium Quantity (i.e. increase or decrease, or no change in Demand or Supply, increase or decrease in equilibrium price and equilibrium quantity or indeterminate). Also, explain which determinant of demand or supply is causing the change. (6.5 marks) • Tires. Two major tire businesses go bankrupt and exit the market • Gas. Due to Covid economy is shut down and most people are working from home • Apple iPhone. A serious defect in the iPhone battery and new improved technology in iphone production. S Co 40 ENG Part ii) The following table sets the demand and supply schedules for gum (3.5 marks) Price (cents per gum) Quantity Demanded (packs/week)__ 180 140 20 40 90 Quantity Supplied (packs/week) 60 60 60 80 a) If the price of gum is 40cents a pack, describe the situation in the gum market. Explain how the price adjusts. b) If the price of gum 80cents a pack, describe the situation in the gum market. Explain how the price adjusts. c) What is the market equilibrium ? 80 90 120
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Part i SOLUTION Partit TIRES P PRICE fr Fog T PO O S D S G Eo 0 00 S QUANTITY The unitial equilibrium of the demand DD for tires and supply SS of tires is determined by their intersection at point Eo ... View the full answer
Related Book For
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
Posted Date:
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