Practice Problems - Practice Problems 1. Demand and Supply...

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Practice Problems 1. Demand and Supply a) A new study shows that eating beef raises the risk of heart disease. What happens to the demand for beef? Assuming competitive markets show and explain the effect on equilibrium price and quantity. b) Coke doubles the price of a can of Coke. What happens to the demand for Pepsi? What happens to the demand for Coke? Assuming competitive markets show and explain the effect on equilibrium price and quantity. c) 20,000 immigrants arrive into Miami and need to rent an apartment. What happens to the demand for apartments? Assuming competitive markets show and explain the effect on equilibrium price and quantity. d) Increased graduations of new doctors on the market for physician services. Illustrate this on the graph. Assuming competitive markets show and explain the effect on equilibrium price and quantity.
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e) A technological change that reduces the cost of producing X-rays on the market for physician clinic services. Illustrate this on the graph. Assuming competitive markets show and explain the effect on equilibrium price and quantity. f) A price ceiling placed on physician fees in the market for physician services. Illustrate this on the graph. Assuming competitive markets show and explain the effect on equilibrium price and quantity. 2.
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This note was uploaded on 12/14/2009 for the course ECON 1 taught by Professor Martholney during the Spring '08 term at University of California, Berkeley.

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Practice Problems - Practice Problems 1. Demand and Supply...

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