Question

In: Economics

4. For each market whose product is highlighted in italics, identify whether each of the following...

4. For each market whose product is highlighted in italics, identify whether each of the following trends represents an increase or decrease in demand or an increase or decrease in quantity demanded. How would you describe each change in graphical terms?

a. The drop in the monthly subscription rate changes the number of subscribers to a cable TV provider.
b. The quantity of canned milk purchased adjusts due to a decrease in consumer incomes.
c. The price of a particular brand of perfume rises, leading to a change in sales
d. A rise in the popularity of free online games changes how many computer games consumers choose to purchase

Solutions

Expert Solution

ANS-4 a) Drop in monthly subscription rate changes the number of subscribers to a cable TV provider .

EFFECT : 1. The demand decreases for cable TV due to drop in subscription rate . The demand curve shifts from D to D1 .

2. The supply curve faces a contraction of quantity supplied from E to E1.

3. The equilibrium price decreases from P to P1.

.4. The equilibrium qty decreases from Q toQ1.

ans-4 b) The quantity of canned milk purchased adjusts due to a decrease in consumer incomes .

EFFECT -: 1. The demand for canned milk falls due to decrease in consumer income . The demand curve shifts from D to D1.

2. The supply curve faces a contraction of quantity supplied from E to E1.

3. The equilibrium price decreases from P to P1.

4. The equilibrium qty decreases from Q toQ1.

Ans- 4c ) The price of particular brand of perfume rises leading to a change in sales.

EFFECT -: 1. The demand curve faces a contraction of quantity demanded from E to E1 due to rise in prices from P to P1.

2. DUE TO CONTRACTION IN DEMAND , THE SUPPLY CURVE SHIFTS LEFTWARDS (DECLINE) FROM S TO S1.

(Note : If the change in sales is for some other brand then a change in price of particular brand will decrease its sales and the consumers will shift to other brand which will face an increase in demand . Thus the prices of that brand will also rise and there will extension in quantity supplied)

MARKET FOR PARTICULAR BRAND OF PERFUME -:

MARKET FOR OTHER BRAND OF PERFUME -:

(NOTE-: IT was not clearly mentioned as to what market needs to be addressed so I have given both the markets.The explanation for 2nd market is in note mentioned above)

Ans - 4 d) A rise in popularity of free online games changes how many computer games consumers choose to purchase.

EFFECT -: 1. Computer games and online games are substitutes to each other . The rise in demand of online games will lead to a decline in demand for computer games. The demand curve for computer games will decrease from D to D1 and the demand for online games will increase from D to D1.

2. The supply curve will face contraction of quantity supplied in computer games market and there will be extension along the supply curve in online games market.

3. The price for computer games will decline from P to P1.

And the price for online games will increase from P to P1.

MARKET FOR COMPUTER GAMES -:

MARKET FOR ONLINE GAMES -:

NOTE -: I have mentioned both markets for this part as it was not clear as to what market needs to addressed .

Rahul Sunny answered 9 months ago
Next > < Previous

Related Solutions

For each market whose product is highlighted in bold letters, sketch a graph showing the change in either demand or supply and the resulting change in equilibrium price and quantity
For each market whose product is highlighted in bold letters, sketch a graph showing the change in either demand or supply and the resulting change in equilibrium price and quantity (Start by drawing a demand-supply equilibrium and then show the change). In each case, identify the demand or supply factor causing the shift to justify your answer.a. (3.5 points) Engineers have discovered a more efficient way to produce aluminum that significantly reduces production costs of aluminum. Show its effects on...
Identify whether each of the following statements is true or false. a. If the demand and...
Identify whether each of the following statements is true or false. a. If the demand and supply for a product both​ increase, the equilibrium quantity of the product must also increase. A. True B. False b. If the demand and supply for a product both​ increase, the equilibrium price of the product must also increase. A. True B. False c. If the demand for a product decreases and the supply of the product​ increases, the equilibrium price of the product...
In each of the following examples, identify whether the person or institution will be penalized by...
In each of the following examples, identify whether the person or institution will be penalized by inflation and, if so, why. a. Mosie borrows $5,000 for her college expenses at an interest rate of 4 percent to be paid off over five years, during which time the inflation rate averages 6 percent. b. Oscar invests $3,000 in securities that pay 5.3 percent anually for 10 years, and the inflation rate during that time averages 6.4 percent. c. The Lilyton National...
1. Identify whether each of the following is a debit or a credit in the country...
1. Identify whether each of the following is a debit or a credit in the country of Freedonia’s BOP and indicate where the item would be classified. a. Freedonian firms export $250 million worth of goods. b. Freedonian citizen’s purchase $50 million worth of tickets on US Airways flights. c. A Freedonian firm purchases a shoe factory in Mexico for $30 million. d. Freedonia receives $5 million in foreign aid from the United States. e. Freedonian citizens deposit $15 million...
6. How will the following events affect equilibrium price and quantity for the product highlighted in...
6. How will the following events affect equilibrium price and quantity for the product highlighted in italics? In each case, identify how the supply or demand curve shifts. a. A drop in consumer incomes influences the demand for dry cleaning b. Declining numbers of law school graduates affect the supply of legal services c. Consumer expectations that the price of turkeys will soon rise affect the current demand for turkeys d. A cost-saving technological innovation influences the supply of rice
For each of the following symptoms identified on the nursing assessment, identify whether it is applicable...
For each of the following symptoms identified on the nursing assessment, identify whether it is applicable to anorexia or bulimia: Emaciation Anemia Electrolyte imbalance Malnutrition Dehydration Abnormal vital signs (increased temperature, decreased pulse) Hair loss Swollen parotid gland Peripheral edema Hemoptysis Chronic sore throat Irregular menses Constipation Tooth discoloration Lanugo Amenorrhea Dental caries
For each of the following statements, identify whether the statement is true or false, and explain...
For each of the following statements, identify whether the statement is true or false, and explain why. Please limit each response to no more than 2 sentences. a) The probability that a continuous random variable takes a specific value is 0. b) Statistical inference is the process of drawing conclusions about unknown statistics by using known parameters. c) The terms “histogram” and “bar graph” are synonyms. d) If two events A and B are independent, then there is no overlap...
For each of the following scenarios, identify whether or not process is random (e.g. random or...
For each of the following scenarios, identify whether or not process is random (e.g. random or non-random) and, if random, what distribution can be used to describe it (binomial, poisson, hyper-geometric, uniform, normal, exponential, or none of the listed before): 1. Counting the number of car accidents on Hamburg Turnpike between 8 and 9 AM on Mondays 2. Counting the number of houses in each block in the city 3. Recording scores from consecutive SAT test attempts 4. Counting the...
For each of the following statements, identify whether the statement is true or false, and explain...
For each of the following statements, identify whether the statement is true or false, and explain why. Please limit each response to no more than 2 sentences. 1) The probability that a continuous random variable takes a specific value is 0. 2) Statistical inference is the process of drawing conclusions about unknown statistics by using known parameters. 3) The terms “histogram” and “bar graph” are synonyms. 4) If two events A and B are independent, then there is no overlap...
For each of the following government programs, please identify and provide an explanation as to whether...
For each of the following government programs, please identify and provide an explanation as to whether they are efforts to correct market failure, to promote or discourage the consumption of merit or demerit goods, or to transfer income. a. Head Start, a preschool program for low-income children b. Sports leagues for children sponsored by local governments c. A program to limit air pollution generated by power plants d. Species preservation efforts by the government
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT