Equilibrium%20Problems.Supply%26Demand

Equilibrium%20Problems.Supply%26Demand - Markets: Markets:...

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Unformatted text preview: Markets: Markets: Demand & Supply Problems #1. In the market for oranges, what will #1. In the market for oranges, what will happen if there is great weather in Florida and California? Price Supply Pe Demand Quantity Qe #1. In the market for oranges, what will #1. In the market for oranges, what will happen if there is great weather in Florida and California? Price Supply increases; price falls; output rises Supply Pe New Price Demand Quantity Qe New Quantity New Supply #2. In the market for eggs, what will happen if they #2. In the market for eggs, what will happen if they are found to raise cholesterol levels and raise the risk of heart problems? Price Supply Pe Demand Quantity Qe #2. In the market for eggs, what will happen if they #2. In the market for eggs, what will happen if they are found to raise cholesterol levels and raise the risk of heart problems? Price Demand decreases; price falls; output falls Supply Pe New Price Demand New Demand Quantity New Qe Quantity #3. In the market for fine dining, what will happen #3. In the market for fine dining, what will happen if incomes across the population rise? Price Supply Pe Demand Quantity Qe #3. In the market for fine dining, what will happen #3. In the market for fine dining, what will happen if incomes across the population rise? Demand increases; price rises; output rises Supply New Price Pe New Demand Demand Quantity Qe New Quantity Price #4. In the market for Hawaiian vacations, what will #4. In the market for Hawaiian vacations, what will happen if tourists are killed in Miami and hotel workers (in HI) get higher wages? Price Supply Pe Demand Quantity Qe #4. In the market for Hawaiian vacations, what will #4. In the market for Hawaiian vacations, what will happen if tourists are killed in Miami and hotel workers (in HI) get higher wages? Price New Price Pe New Supply ??? Demand increases & Supply decreases; price rises; output ??? Supply New Demand ??? Demand New Q New e Q ?? Q ?? Quantity #5. In the market for cookbooks, what will happen #5. In the market for cookbooks, what will happen if scientists find a promising cure for AIDS? Price Supply Pe Demand Quantity Qe #5. In the market for cookbooks, what will happen #5. In the market for cookbooks, what will happen if scientists find a promising cure for AIDS? Probably no effect on supply and demand. Supply Pe Price Demand Quantity Qe #6. In the market for beef, what will happen if the #6. In the market for beef, what will happen if the price of pork rises and the government restricts the import of beef? Price Supply Pe Demand Quantity Qe #6. In the market for beef, what will happen if the #6. In the market for beef, what will happen if the price of pork rises and the government restricts the import of beef? Price New Price Pe New Supply ??? Demand increases & Supply decreases; price rises; output ??? Supply New Demand ??? Demand New Q New e Q ?? Q ?? Quantity #7. In the market for apartments, what will happen #7. In the market for apartments, what will happen if enrollment in NAU increases by 25%? Price Supply Pe Demand Quantity Qe #7. In the market for apartments, what will happen #7. if enrollment in NAU increases by 25%? Demand increases; price rises; output rises Supply Price New Price Pe New Demand Demand Quantity Qe New Quantity #8. In #7 (market for apartments), what will #8. In #7 (market for apartments), what will happen if NAU students successfully lobby the city council to establish a rent ceiling” at Pe? Price New Price Pe Supply New Demand Demand Quantity Qe New Quantity #8. In #7 (market for apartments), what will #8. In #7 (market for apartments), what will happen if NAU students successfully lobby the city council to establish a “rent ceiling” at Pe? Price Off Mkt Price Fixed Price New Demand Old Demand Available DesiredQ Quantity uantity Quantity Supply What is the “problem” in this market? What is the “problem” in this market? • There is shortage of apartments . . . at the controlled price! • There are fewer apartments available than would be true if the rents were not controlled. • Losers – landlords, students that can’t find apartments, students that can find apartments but must “pay” higher costs. • Winners – the whiners. How can tenants “pay” more in this market? • Under the table payments. • Sub­leasing. • Special deposits (perhaps non­refundable). • Reduced quality. • “Unfair” discrimination. • Parking, and other, fees. #9. In the market for new cars, what will happen if #9. In the market for new cars, what will happen if gas prices jump by 25% and auto workers go on strike? Price Supply Pe Demand Quantity Qe #9. In the market for new cars, what will happen if #9. In the market for new cars, what will happen if gas prices jump by 25% and auto workers go on strike? Price New Price ?? Pe New Price ?? Demand New Demand ??? Quantity New Q Qe New Supply ??? Demand decreases & Supply decreases; output falls; price ??? Supply #10. In the market for PCs, what will happen if #10. In the market for PCs, what will happen if workers see that the future will require that they have computer skills and Intel invents a new, bigger, faster, cheaper computer chip? Price Supply Pe Demand Quantity Qe #10. In the market for PCs, what will happen if #10. In the market for PCs, what will happen if workers see that the future will require that they have computer skills and Intel invents a new, bigger, faster, cheaper computer chip? Price Supply New Price ?? Pe New Price ?? New Demand ??? Demand Quantity Qe New Q Demand increases & Supply increases; output rises; price ??? New Supply ??? #11. In the market for peanuts, what will happen if #11. In the market for peanuts, what will happen if the government establishes licensing as a mechanism for raising peanut farmer incomes? Price Supply Pe Demand Quantity Qe #11. In the market for peanuts, what will #11. In the market for peanuts, what will happen if the government establishes licensing as a mechanism for raising peanut farmer incomes? Price New Supply New Price Pe Supply Supply decreases; output falls; price rises Demand New Q Q e Quantity #12. In the market for Windows XP, what will #12. In the market for Windows XP, what will happen if the price of Apple PCs fall as does the price of software that is compatible with XP? Price Supply Pe Demand Quantity Qe #12. In the market for Windows XP, what will #12. In the market for Windows XP, what will happen if the price of Apple PCs fall as does the price of software that is compatible with XP? Price New Price ?? Pe New Price ?? New Demand ??? Demand New Demand ??? Quantity New Q ?? Demand increases & decreases; output ???; price ??? Supply New Q ?? Qe ...
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