Which range of aggregate supply would represent an economy where prices are rising as output increases? Provide the name and shape Given figure shows a market currently in equilibrium. What might cause the market to move to a price of P3 and quantity of Q4? * 0,0₂ Q₂ Q₂Q Quantity D (A) An increase in supply with no change in demand (B) A decrease in demand with no change in supply (C) A decrease in supply with no change in demand (D) A decrease in supply with a decrease in demand
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- The aggregate demand and supply for Cancum are shown in the table below. Potential GDP (LAS) is $1,200 billion. Price Index 105 110 115 120 125 130 135 140 Aggregate Quantity Demanded 1,300 1,200 1,100 1,000 900 800 700 600 Aggregate Quantity Supplied 325 650 850 1,000 1,100 1,200 1,300 1,350 a. If the economy is in equilibrium, it experiencing a(n) (Click to select)✓ gap of $ b. Suppose government uses countercyclical fiscal policy to close the gap. In order to achieve full employment AD would have to (Click to select) by $ c. As a result of this change, the inflation rate would be %. Round your answer to 2 decimal places.Supply and Demand: End of Chapter Problems 4. Why would we see a decrease in demand for certain goods if incomes are rising in an economy? Because suppliers stop producing certain goods. when incomes are rising, people start saving more and reduce their consumption of all goods. some goods are inferior goods and consumers substitute normal goods for them when incomes are rising. when incomes are rising the demand for all goods increases. Thus, the statement is not true. a 81 64°FThe Unique Gifts catalog lists a "super loud and vibrating alarm clock." Their records indicate the following information on the relation of monthly supply and demand quantities to the price of the clock. Demand Supply Price 166 131 $31 146 181 $43 Use this information to find the following. (a) points on the demand linear equation (x, p) (smaller x-value) (х, р) %3 (larger x-value) points on the supply linear equation (х, р) (smaller x-value) (x, p) = ( ) (larger x-value) (b) the demand equation p = (c) the supply equation p (d) the equilibrium quantity and price Equilibrium occurs when the price of the clock is $ and the quantity is
- A change in consumer’s expectations causes a movement along the demand curve or a shift in the demand curve? Explain. A change in price of the goods results in a movement along the demand curve or a shift in the demand curve? Explain (Word count: 250 words max.) Buyers' expectations about future prices can affect the demand curve. If consumers expect prices to increase, they buy more of a product now, and the demand curve moves to the right. A demand schedule for a normal good is as follows: Price Quantity demanded Rs.230 70 210 90 190 110 170 130 Do you think that the increase in quantity demanded (say, from 90 to 110 in the table) when price decreases (from Rs.210 toRs.190) is due to a rise in consumers’ income? Explain clearly (and briefly) why or why not. Now suppose that the good is an inferior good. Would the demand schedule still be valid for…The immediate effect of gasoline price increases in the aftermath of the Persian Gulf in August 1990 on gasoline consumption was not very significant. Would you expec consumption of gasoline to be more severely affected if these higher prices remain effect for a year or more? Why or why not?PROBLEMConsider the following: If the price per unit of good A is P175 quantity purchased is valued at5,250 units and quantity supplied equals 2,500 units. If price changes by P1, quantitydemanded changes by 4 units for consumer demand and quantity supplied changes by 2units.Required (Show supporting calculations.):1. Determine the demand and supply functions.2. Determine the price and quantity at equilibrium, using algebraic solution.3. Graph demand and supply curves on one set of axes and highlight the following: priceintercepts of demand and supply curves, quantity-intercepts of demand and supplycurves, and the equilibrium point. (Make sure to LABEL your graph accordingly.)
- Evaluate the effect of changes in supply and demand on theequilibrium price and quantity.When due to rise in price of a good, total expenditure on the good also rises, then demand is _________Q3Use a matrix method to find the equilibrium prices and quantities where the supply and demand functionsfor Good 1, Good 2 and Good 3 are asQd1 = 50 − 2P1 + 5P2 − 3P3, Qs1 = 8P1 − 5Qd2 = 22 + 7P1 − 2P2 + 5P3, Qs2 = 12P2 − 5Qd3 = 17 + P1 + 5P2 − 3P3, Qs3 = 4P3 − 1
- Need help with Evaluation Evolution Question 3 asks how easily the quantity supplied of salmon can be changed in response to changes in its price. In your answer, write about the short term - if the price of salmon doubled today, for example, could the quantity supplied of salmon double in the next year? What are the constroints on increasing supply? Then consider the long term. What are the constraints on increasing supply and how important are they? Come to an overall condusion about the short term and long term.1. Which of the following will result in an uncertainty regarding any change that might occur in the equilibrium quantity but a definite increase in the equilibrium price? a) An increase in demand and a decrease in supply b) A decrease in demand and a decrease in supply c) A decrease in demand and an increase in supply d) An increase in demand and an increase in supply 2. In a production possibility frontier (PPF) graph it is observed that points 1,2,3, and 4 lie on the PPF, Point 5 is outside the PPF, and point 6 is inside the PPF. Which of the following statements is correct? a) Point 6 can be produced only if there is an increase in resource availability and/or an improvement in technology. b) Points 1-4 and 6 can be produced with the currently available resources and technology, but resources are used efficiently only at points 1-4. c) Point 5 can be produced with the currently available resources and technology, but the resource use is inefficient. d) Point 6 can be produced with…Illustrate and explain how the market for milk in the US economy will maintain equilibrium over time given the problem that will exist with current demand conditions