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 inelastic
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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
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- Hand Sanitizer Due to the H1N1 flu outbreak, the demand for hand sanitizer has tripled. Should Johnson & Johnson increase production of their Purell hand sanitizer? Should it invest in doubling production capacity?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…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
- 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 OOOThe 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…Agis Homes is one of the largest builders of new homes in the U.S. As the economist for Agis Homes, you have forecast the following for the year 2022: The price of lumber used to construct homes will increase by 25% The economy will come roaring back and personal income will increase by close to 10% Assume that the prices of new homes are determined by supply and demand. Assuming everything else is held constant: If both of these impacts occur at the same time, what do you expect to happen to the equilibrium price and quantity of new homes? Use demand and supply analysis to help explain your answer.
- Question 2 The equilibrium price of televisions fell significantly in the past month; however the equilibrium quantity remained unchanged. Three individuals provided an explanation for the situation. Which explanation(s) could be correct? Explain your logic. Mark: Demand increased, but supply was totally inelastic. Shawn: Supply increased, but so did demand. Annica: Supply decreased, but demand was totally inelasticThe equilibrium price of coffee mugs rose sharply last month, but the equilibrium quantity was the same as ever. Three people tried to explain the situation. Which explanations could be right? Explain your logic. Ali: Demand increased, but supply was totally inelastic. Khan: Supply increased, but so did demand. Rabia: Supply decreased, but demand was totally inelastic.Changes to Supply, Quantity Supplied, Demand, and Quantity Demanded Using the table, for each line item and its associated column, describe how the market for each specific product will be affected by the associated event indicating whether it will rise, fall, or no change. For example, in the first line item for the market of corn, based upon the event of a severe drought, the price will either rise or fall or no change, demand curve will shift left (fall) or right (rise) or no change, supply curve will shift left (fall) or shift right (rise) or no change, quantity demanded will rise, fall, or no change, and quantity supplied will either rise, fall, or no change. Event Market for: Price Demand Curve Supply Curve Quantity Demanded Quantity Supplied A severe drought hits the Midwest corn growers Corn The U.S. government reduces taxes on imported lumber New Home Building The federal government raises the minimum…
- You are a financial analyst with a specialization in the motion pictureIndustry. You have been hired to analyze the prices of movie theater tickets. The following two events are occurring simultaneously in the Ghana:A new national chain opens new multi-screen movie theaters in most cities in Ghana.Movie theaters cut the price of popcorn and soft drinks in half.Draw a demand-and-supply graph showing equilibrium in the market for movie tickets hefore the above two events took place. Label the axes and curves. Label the initial equilibrium — before events (i) and (ii) - as P,and Q, on your graph.b.Now show on your graph how event (i) affects the demand or supply curves for tone teres, Brelly explain which of the demand or supply variables caused the eftect you are showing on your graph.Now slow on your graph how event (il) affects the demand or supply curves for ovis Lesets. Brielly explain which of the demand or supply variables caused the effe you are showing on your graph.Based on your…Question 33 Consider the following series of shifts in Supply and Demand. Complete the following table, indicating in each of the 9 cells whether equilibrium price and equilibrium quantity go up, down, or stay the same. (Note: To reproduce the table for this question, you may make an exception to the usual 'no cutting and pasting' requirement for this test.) No Change in Supply An Increase in Supply A Decrease in Supply No Change in Demand An Increase in Demand A Decrease in DemandSuppose both supply and demand increase. What effect will this have on the equilibrium quantity? Explain; graphs are recommended
