2021, Total demand has increased by 50% and the supply increased by 70% in the dom due to technological advances in the production methods. What should you obse market equilibrium point based on this situation? (Hint: both curves are normal in O a. Price decreases, equilibrium quantity exchanged decreases O b. Price decreases, equilibrium quantity exchanged increases O c. Price increases, equilibrium quantity exchanged increases O d. Price increases, equilibrium quantity exchanged is undetermined

2021, Total demand has increased by 50% and the supply increased by 70% in the dom due to technological advances in the production methods. What should you obse market equilibrium point based on this situation? (Hint: both curves are normal in O a. Price decreases, equilibrium quantity exchanged decreases O b. Price decreases, equilibrium quantity exchanged increases O c. Price increases, equilibrium quantity exchanged increases O d. Price increases, equilibrium quantity exchanged is undetermined

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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[MUST SHOW WORK] Consider the above table for the market for oranges. A deep frost destroys many or the orange juice businesses to go put of business. As a result, quantity supplied decreases hper kg and the new equilibrium quantiy is.........? kg of oranges The new equilibrium price is .............? kg of oranges Select one: O A. 1.70;400 O B. 1.10; 700 O C. 1.20;650 O D. 0.90;400 O E. 1.50;500
Quantity Demanded 6 7 8 9 10 11 12 Price $8 7 6 5 4 3 2 Refer to the above table. If demand decreased by 4 units at each price and supply decreased by 2 units at each price, what would the new equilibrium price and quantity be? Multiple Choice O $6 and 6 units $5 and 5 units O $4 and 6 units Quantity Supplied 10 9 8 7 6 5 4 $7 and 7 units
In mid-2010, Saudi Arabia and Venezuela (both members of OPEC)produced an average of 8 million and 3 million barrels of oil a day,respectively. Production costs were about $20 per barrel, and the price ofoil averaged $80 per barrel. Each country had the capacity to producean extra 1 million barrels per day. At that time, it was estimated that each1-million-barrel increase in supply would depress the average price of oilby $10.a. Fill in the missing profit entries in the payoff table.b. What actions should each country take and why?Venezuela3 M barrels 4 M barrels8 M barrels _____, _____ _____, _____ Saudi Arabia9 M barrels _____, _____ _____, _____c10GameTheoryandCompetitiveStrategy.qxd 9/29/11 1:33 PM Page 430Summary 431c. Does the asymmetry in the countries’ sizes cause them to take differentattitudes toward expanding output? Explain why or why not. Commenton whether or not a prisoner’s dilemma is present.
Suppose there are two consumers in the market for a good, consumer 1's inverse demand function is p=80 – 24, and consumer 2s inverse demand function is p =36 - : Suppose further that the inverse market supply is p 20 + q. What is the competitive equilibrium? Oa. Competitive equilibrium price is 28 and competitive equilibrium quantity is 8 O b. Competitive equilibrium price is 40 and competitive equilibrium quantity is 8 O C Competitive equilibrium price is 40 and competitive equilibrium quantity is 20 O d. Competitive equilibrium price is 28 and competitive equilibrium quantity is 20
What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start producing music compact discs, and music lovers experie an increase in income? Select one: O a. Equilibrium price increases and equilibrium quantity decreases O b. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. O c. Equilibrium price would decreaşe, but the impact on eguilibrium quantity would be ambiguous. O d. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. e. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
3) The following figure shows the demand and supply curves for USB flash drives. D is the demand curve and S1 is the initial supply curve. Price (S) O 10 Quantity (units) 20 40 60 Refer to the figure above and answer the questions: a) When the demand curve for flash drives is D and the supply curve of flash drives is S1, the equilibrium price is with an equilibrium quantity ofunits. If the supply curve for flash drives shifts from S1 to S2, with no change in the demand curve, the new competitive equilibrium price is with a new equilibrium quantity of units. b) When the demand curve for flash drives is D and the supply curve of flash drives is S1, what is the surplus in the market if the price is $7? O When the demand curve for flash drives is D and the supply curve of flash drives is S1, what is the shortage in the market if the price is $4?
a) Consider the market for cars, which is currently in equilibrium. The US government imposes an equal tax on production and on consumption. This will O Decrease equilibrium quantity and price O Increase equilibrium quantity and price O Increase equilibrium quantity and decrease equilibrium price O Decrease the equilibrium quantity the market and increase the equilibrium price b) The government is imposing an effective price ceiling on gasoline. As a result, O Producers will benefit with certainty O Consumers will benefit with certainty O Society will be worse off O Consumers will be harmed with certainty c) Research shows that the income effect for a subgroup of people in the US is stronger than the substitution effect, when it comes to retirement savings. To encourage increased retirement savings rates for this subgroup of the population, the US government should therefore O Provide tax reductions on retirement savings O Increase taxes on retirement savings O Leave things as they…
6. Consider the market for soybeans in a small country, with the inverse demand given byP = 5.5 – 0.025QD and the inverse supply P = 0.5 + 0.025QS (where P stays for price in €and Q for quantity of soybeans expressed in millions of bushels). a) Determine the domestic market equilibrium under autarky and draw this market outcomein a graph. Remember to label the axes, the curves, and the market equilibrium.b) Suppose now that the country opens to trade and the world market price stays at €2 perbushel. Determine and show in the graph the amount of domestic production, consumption,and imports.c) Suppose the government puts a tariff of €0.25 per bushel on soybean imports. Determineand show in the graph by how much the domestic consumption, production, and tradechange due to the tariff. How much fiscal revenue does the government get from the tariff?
Suppose the market for wooden picnic benches experiences the following event: The price of plastic picnic benches (a substitute for wooden picnic benches) decreases in price. The effect on equilibrium will be: O Increase in equilibrium price and quantity O Decrease in equilibrium price and increase in equilibrium quantity Increase in equilibrium price and decrease in equilibrium quantity O Decrease in equilibrium price and quantity
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
Air fares are generally lower on Tuesdays and Wednesdays each week. What is a likely explanation for this occurrence? O Supply is relatively variable, and lower demand on these days leads to a lower equilibrium price. O Demand is relatively variable, and lower supply leads to a lower equilibrium price. Lower levels of both supply and demand on these days lead to a lower equilibrium price. Supply is relatively fixed, and lower demand on these days leads to a lower equilibrium price. Demand is relatively fixed, and lower supply leads to a lower equilibrium price. OO
The government offers subsidies to homeowners for the purchase and installation of solar energy generating equipment. Given that silicon (derived from silicate minerals) is the main input in the production of solar panels, how will the subsidy affect the market for silicon? O Supply will rise, leading to an increase in the equilibrium quantity and decrease in price. O Demand will fall, leading to a decrease in the equilibrium price and quantity. O None of the above. O Supply will fall, leading to an increase in the equilibrium price and decrease in the quantity. O Demand will rise, leading to an increase in the equilibrium price and quantity of silicon.