DIRECTIONS 1. Consider the market for bicycles. 2 Each of the events listed below has an...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
DIRECTIONS 1. Consider the market for bicycles. 2 Each of the events listed below has an impact on the market for bicycles. - For cach event, fill in the blanks as to which curve is affected (Demand or Supply). whether it will Increase or Decrease, and which factor or shifter is the reason why. Graph your answers in the market for bicycles. Then state what will happen to Price and Quantity after market reaches the new equilibrium. PROBLEMS: 1. The price of automobiles increases. a. Which curve is affected Demand * Will it increase or decrease? increase (Demand or Supply) b. What is the relevant factor or shifter? Price of Related Goods-automobiles are a substitute for bicycles c. The Demand (Demand or Supply) curve will shift right fright or left) Need to graph what you have chosen above BEFORE you can answer the rest (see below). d. Price will increase (increase or decrease) and Quantity will_increase to reach the new equilibrium. (increase or decrease) P2 PI DI Bicycles 2. Consumers' incomes decrease and bicycles are a normal good. a. Which curve is affected ? Will it increase or decrease? (Demand or Supply) b. What is the relevant factor or shifter? c. The (Demand or Supply) curve will shift (right or left) Need to graph what you have chosen above BEFORE you can answer the rest (see below). d. Price will and Quantity will to reach the new equilibrium. (increase or decrease) (increase or decrease) PI QI 3. The price of steel used to make bicycle frames increases. a. Which curve is affected ? Will it increase or decrease? (Demand or Supply) b. What is the relevant factor or shifter? c. The (Demand or Supply) curve will shift (right or left) Need to graph what you have chosen above BEFORE you can answer the rest (see below). d. Price will and Quantity will to reach the new equilibrium. (increase or decrease) (incrense or decrease) Graph Here: 4. An environmental movement shifts tastes toward bicycles. a. Which curve is affected ? Will it increase or decrease? (Demand or Supply) b. What is the relevant factor or shifter? c. The (Demand or Supply) curve will shift (right or left) Need to graph what you have chosen above BEFORE you can answer the rest (see below). d. Price will and Quantity will to reach the new cquilibrium. (increase or decrease) (increase or decrease) Graph Here: 5. Consumers expect the price of bicycles to fall in the future. a. Which curve is affected ? Will it increase or decrease? (Demand or Supply) b. What is the relevant factor or shifter? c. The (Demand or SupPply) curve will shift (right or left) Need to graph what you have chosen above BEFORE you can answer the rest (see below). d. Price will and Quantity will to reach the new equilibrium. (increase or decrease) (increase or decrease) Graph Here: 6. A technological advance in the manufacture of bicycles occurs. a. Which curve is affected ? Will it increase or decrease? (Demand or Supply) b. What is the relevant factor or shifter? c. The (Demand or Supply) curve will shift (right or left) Need to graph what you have chosen above BEFORE you can answer the rest (see below). d. Price will and Quantity will to reach the new equilibrium. (increase or decrease) (increase or decrease) Graph Here: 7. The price ofr bicycle helmets and shoes are reduced. a. Which curve is affected ? Will it increase or decrease? (Demand or Supply) b. What is the relevant factor or shifter? C. The (Demand or Supply) curve will shift (right or left) Need to graph what you have chosen above BEFORE you can answer the rest (see below). d. Price will and Quantity will to reach the new equilibrium. (increase or decrease) (increase or decrease) Graph Here: 8. Consumers' incomes decrease and bicycles are an inferior good. a. Which curve is affected ? Will it increase or decrease? (Demand or Supply) 6. What is the relevant factor or shifter? C. The (Demand or Supply) curve will shift (right or left) Need to graph what you have chosen above BEFORE you can answer the rest (see below). d. Price will and Quantity will to reach the new equilibrium. (increase or decrease) (increase or decaease) Graph Here: 9. If there is a surplus of a good, the price must be ( above / below ) the equilibrium price for that good and the price will ( rise / fall ) as market returns to equilibrium. 10. If there is a shortage of a good, the price must be ( above / below) the equilibrium price for that good, and the price will ( rise / fall ) as market returns to equilibrium. 11. The following question addresses the bicycle market when both supply and demand shift. a. Suppose there is an environmental movement that shifts tastes for bicycles AND the price of steel used to make bicycles increases. State what happens: Demand will [ increase / decrease ] Supply will [ increase / decrease ] b. What will happen to equilibrium Price and Quantity after the shifts: Hint: sketch a graph of the scenario below to answer the question. Price will increase / decrease / cannot detemine ] Quantity will [ increase / decrease / cannot determine ] Graph: DIRECTIONS 1. Consider the market for bicycles. 2 Each of the events listed below has an impact on the market for bicycles. - For cach event, fill in the blanks as to which curve is affected (Demand or Supply). whether it will Increase or Decrease, and which factor or shifter is the reason why. Graph your answers in the market for bicycles. Then state what will happen to Price and Quantity after market reaches the new equilibrium. PROBLEMS: 1. The price of automobiles increases. a. Which curve is affected Demand * Will it increase or decrease? increase (Demand or Supply) b. What is the relevant factor or shifter? Price of Related Goods-automobiles are a substitute for bicycles c. The Demand (Demand or Supply) curve will shift right fright or left) Need to graph what you have chosen above BEFORE you can answer the rest (see below). d. Price will increase (increase or decrease) and Quantity will_increase to reach the new equilibrium. (increase or decrease) P2 PI DI Bicycles 2. Consumers' incomes decrease and bicycles are a normal good. a. Which curve is affected ? Will it increase or decrease? (Demand or Supply) b. What is the relevant factor or shifter? c. The (Demand or Supply) curve will shift (right or left) Need to graph what you have chosen above BEFORE you can answer the rest (see below). d. Price will and Quantity will to reach the new equilibrium. (increase or decrease) (increase or decrease) PI QI 3. The price of steel used to make bicycle frames increases. a. Which curve is affected ? Will it increase or decrease? (Demand or Supply) b. What is the relevant factor or shifter? c. The (Demand or Supply) curve will shift (right or left) Need to graph what you have chosen above BEFORE you can answer the rest (see below). d. Price will and Quantity will to reach the new equilibrium. (increase or decrease) (incrense or decrease) Graph Here: 4. An environmental movement shifts tastes toward bicycles. a. Which curve is affected ? Will it increase or decrease? (Demand or Supply) b. What is the relevant factor or shifter? c. The (Demand or Supply) curve will shift (right or left) Need to graph what you have chosen above BEFORE you can answer the rest (see below). d. Price will and Quantity will to reach the new cquilibrium. (increase or decrease) (increase or decrease) Graph Here: 5. Consumers expect the price of bicycles to fall in the future. a. Which curve is affected ? Will it increase or decrease? (Demand or Supply) b. What is the relevant factor or shifter? c. The (Demand or SupPply) curve will shift (right or left) Need to graph what you have chosen above BEFORE you can answer the rest (see below). d. Price will and Quantity will to reach the new equilibrium. (increase or decrease) (increase or decrease) Graph Here: 6. A technological advance in the manufacture of bicycles occurs. a. Which curve is affected ? Will it increase or decrease? (Demand or Supply) b. What is the relevant factor or shifter? c. The (Demand or Supply) curve will shift (right or left) Need to graph what you have chosen above BEFORE you can answer the rest (see below). d. Price will and Quantity will to reach the new equilibrium. (increase or decrease) (increase or decrease) Graph Here: 7. The price ofr bicycle helmets and shoes are reduced. a. Which curve is affected ? Will it increase or decrease? (Demand or Supply) b. What is the relevant factor or shifter? C. The (Demand or Supply) curve will shift (right or left) Need to graph what you have chosen above BEFORE you can answer the rest (see below). d. Price will and Quantity will to reach the new equilibrium. (increase or decrease) (increase or decrease) Graph Here: 8. Consumers' incomes decrease and bicycles are an inferior good. a. Which curve is affected ? Will it increase or decrease? (Demand or Supply) 6. What is the relevant factor or shifter? C. The (Demand or Supply) curve will shift (right or left) Need to graph what you have chosen above BEFORE you can answer the rest (see below). d. Price will and Quantity will to reach the new equilibrium. (increase or decrease) (increase or decaease) Graph Here: 9. If there is a surplus of a good, the price must be ( above / below ) the equilibrium price for that good and the price will ( rise / fall ) as market returns to equilibrium. 10. If there is a shortage of a good, the price must be ( above / below) the equilibrium price for that good, and the price will ( rise / fall ) as market returns to equilibrium. 11. The following question addresses the bicycle market when both supply and demand shift. a. Suppose there is an environmental movement that shifts tastes for bicycles AND the price of steel used to make bicycles increases. State what happens: Demand will [ increase / decrease ] Supply will [ increase / decrease ] b. What will happen to equilibrium Price and Quantity after the shifts: Hint: sketch a graph of the scenario below to answer the question. Price will increase / decrease / cannot detemine ] Quantity will [ increase / decrease / cannot determine ] Graph:
Expert Answer:
Answer rating: 100% (QA)
2a Demand decreases 2b Decrease in consumers income 2c Demand curve will shift to left 2d Price will ... View the full answer
Related Book For
Intermediate Microeconomics and Its Application
ISBN: 978-1133189039
12th edition
Authors: Walter Nicholson, Christopher M. Snyder
Posted Date:
Students also viewed these economics questions
-
The Evolution of the Fashion Industry: Consider the market for clothes and suppose there exist 100 different styles that can be produced and can be arranged (and equally spaced) on a circle. Among...
-
Consider the market for baby cribs. The market for baby cribs is given by Qd = 140 - 0.2p and the market supply of baby cribs is given by Qs = 0.2p - 20, where Qd is the quantity of baby cribs...
-
Consider the market for cars. Which determinant of supply is affected by each of the following events? Choose from: prices of related goods, technology, prices of inputs, expectations, and the number...
-
Write a short report in which you assess the impact of one piece of health and safety legislation in an organisation of your choice.
-
Consider the following master schedule record for Vaxidene: a. Complete the master schedule record. b. Suppose a hospital in the Tucson area calls and says it is facing an epidemic of bacterial...
-
A delivery car had a first cost of $30,000, an annual operating cost of $12,000, and an estimated $4000 salvage value after its 6-year life. Due to an economic slowdown, the car will be retained for...
-
Let $y_{i j}$ for $i=1, \ldots, b$ and $j=1, \ldots, k$ be the measurement for the unit assigned to the $j^{\text {th }}$ treatment in the $i^{t h}$ block. a. Show that \[S S_{T}=S S_{\text {Treat...
-
Severo S.A. of Sao Paulo, Brazil, is organized into two divisions. The company's contribution format segmented income statement (in terms of the Brazilian currency Real) for last month is given...
-
Suggest a setup to support both file access as well as block access for a SAN with a suitable diagram also give detailed explanation of how this setup can be used.please explain in detail
-
On 1/09/2017 "ABC" Company received $30,000 from customer "X" for services to be performed evenly over a 12 months period starting 1/12/2017. In addition, on 1/10/2017 "ABC" received $11,880 from...
-
When a company has an obligation or right to repurchase an asset for an amount greater than or equal to its selling price, the transaction should be treated as a 1). outright sale. 2). financing...
-
Which of the following statements best explains why indifference curves are generally convex as viewed from the origin? A. The assumption of nonsatiation results in convex indifference curves. B. The...
-
The component least likely to be included in a measurement of gross domestic product (GDP) is: A. the value of owner-occupied rent. B. the annual salary of a local police officer. C. environmental...
-
The firm would like to increase weekly output by 50 chairs. The firm would most likely enhance profits by: A. hiring additional craftspersons. B. leasing additional automated equipment. C. leasing...
-
A child indicates that she prefers going to the zoo over the park and prefers going to the beach over the zoo. When given the choice between the park and the beach, she chooses the park. Which of the...
-
In an industry comprised of three companies that are small-scale manufacturers of an easily replicable product unprotected by brand recognition or patents, the most representative model of company...
-
You have just started a job in a small community centre in a regional town centre. Part of your job role is to visit the homes of people who access the centre, to see what changes may need to be made...
-
Assume Eq. 6-14 gives the drag force on a pilot plus ejection seat just after they are ejected from a plane traveling horizontally at 1300 km/h. Assume also that the mass of the seat is equal to the...
-
While standing in line to buy popcorn at your favorite theater, you hear someone behind you say, "This popcorn isn't worth its price-I'm not buying any." How would you graph this person's situation?
-
Distinguish between altruism, fairness, and reciprocity. Suggest experiments related to the Ultimatum Game that could sort out how much each of these interpersonal values matter to subjects.
-
Consider a signaling model in which the first player may be one of two types. What determines the other player's beliefs about the first player's type before observing the first-player's signal?...
-
Why does spreading feet apart help a surfer stay on the board?
-
Why will a projectile that moves horizontally at 8 km/s follow a curve that matches the curvature of Earth?
-
How much speed does a freely falling object gain during each second of fall?
Study smarter with the SolutionInn App