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b. The
the
explanation for the situation. Which explanation(s) could be correct? Explain.
• Alex: Demand increased, but supply was totally inelastic.
• Lance: Supply increased, but so did demand.
• Ricardo: Supply decreased, but demand was totally inelastic
Step by step
Solved in 2 steps
- b. The equilibrium price of printers saw a large decrease in the past year, howeverthe equilibrium quantity remained unchanged. Three individuals provided anexplanation for the situation. Which explanation(s) could be correct? Explain.• Alex: Demand increased, but supply was totally inelastic.• Lance: Supply increased, but so did demand.• Ricardo: Supply decreased, but demand was totally inelastic C.The demand for pancakes is given by Qd = 40 – 5P and the supply is given byQs = 10P – 20, where P = price What is the equilibrium price and equilibriumquantity? i. The price for iPhones in Barbados has increased significantly. Demand for thecellular device has also increased. This is contrary to the law of demand. Doyou agree or disagree? Explain your answer. ii. Identify the flaw in this analysis: “If more Jamaicans become vegetarians, thedemand for beef will fall. The decrease in the demand for beef will cause theprice of beef to fall. The lower price, however, will then increase the…The equilibrium price of printers saw a large decrease in the past year, however the equilibrium quantity remained unchanged. Three individuals provided an explanation for the situation. Which explanation(s) could be correct? Explain. • Alex: Demand increased, but supply was totally inelastic. • Lance: Supply increased, but so did demand. • Ricardo: Supply decreased, but demand was totally inelasticNot a grade. This is all ONE QUESTION (You don't have to do this I already have the graph) Label the new equilibrium E1. What is the new equilibrium price? 4 What is the new equilibrium quantity? 250 Was this a result of a change in supply or quantity supply? Was this change an increase or a decrease? As a result, did the equilibrium price increase or decrease? As a result, did the equilibrium quantity increase or decrease?
- The monthly market for U.S. steel production (in millions of tons per month) is described in the table below. An increase in the price of iron ore, a critical input in the production of steel, shifts the supply curve to the left, decreasing supply by 200,000 tons at each price. (Hint 200,000 tons = 0.2 million tons.) Instructions: Round your answers to one decimal place. a. Fill in the new supply schedule in the table using the "New Quantity of Steel Supplied" column. Market for U.S. Steel Price (dollars per Initial Quantity of Steel Demanded ton) (millions of tans) $650 1.2 6480 630 620 618 608 598 580 570 568 P=$ per ton P=$ 1.3 1.4 1.5 per ton 1.6 1.7 1.8 1.9 b. What are the initial equilibrium price and quantity in the steel market? 2 2.1 million tons of steel s. What are the new equilibrium price and quantity in the market? Initial Quantity of Steel Supplied (millions of tons) 2.2 million tons of steel 2.1 2 1.9 1.8 1.7 1.6 1.5 1.4 1.3 New Quantity of Steel Supplied (millions of…Suppose you are modeling the market for puzzles. Based on the determinant change listed below, determine what happens to the equilibrium price and equilibrium quantity for each scenario. Card games, a replacement for puzzles, become cheaper. Equilibrium Price Increase: Equilibrium Quantity Decrease Equilibrium Price Decrease: Equilibrium Quantity Increase Equilibrium Price Increase; Equilibrium Quantity Increase Equilibrium Price Decrease; Equilibrium Quantity Decrease Equilibrium Price change is indeterminate: Equilibrium Quantity change is indeterminate OOOAssume that the equilibrium price is at $3 and equilibrium quantity is at 40 units of a product. Then, imagine that suddenly any of determinants of demand, other than the price of the product, caused demand to increase while, at the same time, one of determinants of supply, other than the price of the product, caused supply to decrease. TASK: First, draw the demand and supply graph to show the original equilibrium price at $3 and equilibrium quantity at 40 units. Second pick ONE specific DETERMINANT of DEMAND and ONE specific DETERMINANT of SUPPLY Third, show in the graph what it looked like if demand increased and supply decreased (select where you think that the new price and quantity would change to), what the new equilibrium price and equilibrium quantity would be, after both changes in demand and supply occurred. Fourth, in a couple of words, write down what would be YOUR new equilibrium price and equilibrium quantity. [That is, tell us that the original equilibrium price…
- **JUST NEED GRAPH PART, THANK YOU!** Suppose that the (inverse) demand equation for organic tea is P = 230 - 4Qd and the (inverse) supply curve for organic tea is P = 0.6Qs in a local market. Quantities are measured in pounds per week, and price is measured in dollars per pound of tea. Find the equilibrium quantity and price in this market. Suppose recent regulations for organic tea production, established by the Food and Drug Administration, increase the costs for producers of organic tea. Under these regulations, the new (inverse) supply curve for tea is as follows: P = 16 + 0.6Qs. Find the new market equilibrium quantity and price under these conditions. (Assume that the demand equation remains the same.) Compare the original equilibrium quantity and price to the new equilibrium quantity and price. Has price fallen or risen? Has quantity exchanged fallen or risen? Sketch a supply-and-demand graph to illustrate the market before and after the regulation goes into effect. In this…How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitive market; that is, do price and quantity increase or decrease, or are the answers indeterminate because they depend on the magnitudes of the shifts? a. Supply decreases and demand is constant. Price: Decreases Incorrect Quantity: Indeterminate Incorrect b. Demand decreases and supply is constant. Price: Increases Incorrect Quantity: Indeterminate Incorrect c. Supply increases and demand is constant. Price: Decreases Correct Quantity: Indeterminate Incorrect d. Demand increases and supply increases. Price: Increases Incorrect Quantity: Decreases Incorrect e. Demand increases and supply is constant Price: Indeterminate Incorrect Quantity: Decreases Incorrect f. Supply increases and demand decreases. Price: Decreases Correct Quantity: Increases Incorrect g. Demand increases and supply decreases. Price: Increases…This not a grade Question to go with picture: Label the new Equilibrium E1 What is the new equilibrium price? What is the new equilibrium quantity? Was the result of a change in supply or quantity supply? Was the change an increase or decrease? As a result, did the equilibrium price increase or decrease? As a result did the equilibrium quantity increase or decrease?
- I'm sorry for some reason it didn't add all the parts to the question. This is all one question please answer all parts Label the new equilibrium E1 What is the new equilibrium price? What is the new equilibrium quantity? Was this a result of a change in demand or quantity demand? Was this change an increase or a decrease? As a result, did the equilibrium price increase or decrease? As a result, did the equilibrium quantity increase or decrease?“Decreasing the supply of crude oil raises the crude oil price. When the crude oil price goes up, the demand for crude oil decreases. As a result, the equilibrium crude oil price drops and equilibrium quantity of crude oil declines.” What is (are) the mistake(s) in the above argument? Please state the mistake(s) and correct the above argument.Consider the market for minivans. For each of the following events, identify which of the determinants of supply and/or demand is affected and indicate an increase or decrease in supply and/or demand. Illustrate the shift of a supply curve and/or demand curve in each of the following cases. Describe the change in the equilibrium. 1. People decide to have more children 2. A strike by steelworkers raises steel prices 3. Engineers develop new automated machinery for the production of minivans 4. The price of sports utility vehicles rises. 5. A stock market crash lowers people's wealth.