Question

  please illustrate in a graph the finding below and how each situations are effected.  So we are able to see it visually the outcome.   

7) The costs of producing hats have increased considerably, however, their effect is less than the decrease of taxes for the production of the same. offer increase:

Increase in cost of production leads to supply shift to left. Decrease in tax leads to supply shifting right. In this case net effect of tax decrease is more and hence supply curve will shift to right.

8)The government reduced taxes for individuals, applied to the name of these. demand increases:

When govt. decreases tax, disposable income with people which is income left after tax payments will increase and hence they demand more goods and services and hence demand shifts to the right.

9) Competition prices have increased considerably, resulting in an increase of buyers and this in turn increases the inventory movement. however, buyers 'reaction is greater than inventory movement. demand increases. offer increase:

Net effect is more demand and as demand curve has shifted right the prices are likely to go up. It is true that the supply has shifted right but shift in demand curve is more than supply curve.

10) The manufacturing sector of solar plates invisted $ 75 million in new technology, not obstant, its effect is less than the decrease of consumer preference: This question its not clear.

1) The rice offer increases. offer increase

When supply increases (supply curve shifting right) then prices are likely to go down and demand may go up.

2) Likes and preference for a beauty product for eyelashes have been reduced. demand decreases

Prices will go down and this product is demanded less. Demand curve shifts to the left as this is a non price factor.

Answer 1

Ans 7) The result of decrease in tax is more effective then cost so the supply curve will shift right as a result the price of the commodity will fall. The demand curve will shift to right ward because of decrease in price so the balance will be same.

As seen in this diagram the quantity demanded will increase at the same price which is prevailing in the market.

Ans 8) The demand curve will shift to the right as a result the price will increase at the existing supply in the market. But in long run the price will decrease.

As it can be seen that the price of the commodity will increase because of increase in demand at the given supply curve in the market.

Ans 9) The price will increase in the market as both will move rightward. The demand will increase as a result supply will increase more but the effect of demand curve is more then supply curve so the price will increase to reduce the demand at given supply.

As seen from diagram that S will shift to S1 and demand curve from D to D1 and equilibrium point from E to E1. The quantity demanded will increase as the demand curve will shift more then supply.

Ans 10) The price will fall as a result of the increase in supply. The supply curve will shift to right.

As a result the demand will increase as seen from diagram the equilibrium point will shift from E to E1.

Ans 1) the diagram will be same as in above 7 question. Because both will increase and in long run the equilibrium will be at E1. By the shift of supply curve right the price will decrease in response this the demand curve will shift to right as a result the price will be same as before but now quantity demanded is more.

Ans 2) By the shift in preference of the consumer the demand curve will shift to left.

As a result the price will decrease but supply will remain same as shown in figure.