In: Economics
Determine how the following shocks will affect the supply and
demand curve in the following situations. Draw a graph to
illustrate each answer, specifying the market that you are
analyzing. a. Several new companies enter the home computer
industry.
b. Consumers suddenly decide large cars are unfashionable.
c. The U.S. surgeon general issues a report that tomatoes prevent
colds.
d. Frost threatens to damage the coffee crop, and consumers expect
the price to rise sharply in the future.
e. The price of tea falls. What is the effect on the coffee
market?
f. The price of sugar rises. What is the effect on the coffee
market?
g. Tobacco lobbyists convince Congress to remove the tax paid by
sellers on each carton of cigarettes sold.
h. A new type of robot is invented that will pick peaches.