Predict the direction of change for either supply or demand in the following situations:

a. Several new companies enter the cell phone industry.

b. Consumers suddenly decide SUVs are unfashionable.

c. The U.S. Surgeon General issues a report stating that tomatoes prevent colds.

d. Frost threatens to damage the coffee crop, and consumers expect the price to rise sharply in the future.

e. The price of tea falls. What is the effect on the coffee market?

f. The price of sugar rises. What is the effect on the coffee market?

g. Tobacco lobbyist convince Congress to remove the tax paid by sellers on each carton of cigarettes sold.

h. A new type of robot is invented that will pick peaches.

i. Nintendo anticipates that the future price of its games will fall much lower than the current price.

Answer rating: 100% (QA)

a When several new companies enter the cell phone industry then the supply would increase and demand ... View the full answer