Question: FPLEASE ACTUALLY DRAW GRAPH for each scenario below, draw an accurately labeled market graph of all axes, curves, and equilibria points. Be sure to use
FPLEASE ACTUALLY DRAW GRAPH for each scenario below, draw an accurately labeled market graph of all axes, curves, and equilibria points. Be sure to use arrows to indicate the direction of shifts in supply andor demand.
a The initial market for a video game console in which the manufacturer significantly underestimated demand and priced accordingly. Instead of a shift, indicate the quantity of the shortage or surplus of the console.
b The market for a good after the price of a complement decreases.
c The market for roof repair after a law passes requiring a certification to charge for doing the work.
d The market for smartphones after a significant decrease in the price of a precious metal used in their production.
For the following three parts, answer each question completely, directly, and succinctly.
e If the supply for a good decreases, ceteris paribus, what will happen to the equilibrium price?
f What would happen to the equilibrium price and equilibrium quantity of a good after many suppliers leave the industry at the same time that demand decreases? Explain.
g Imagine that a luxury speed boat manufacturer overestimated consumer demand for its newest model. What would be the first disequilibrium state of this supplier's good, and how would they respond? Explain.
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