Consider the market for pizzas in Sydney using supply and demand analysis. Explain the effect of...

Consider the market for pizzas in Sydney using supply and demand analysis. Explain the effect of each of the following with the help of a diagram on equilibrium price and quantity:

a) Closure of 50% of pizza shops in Sydney.

(2.5 marks)

b) A decrease in the price of tomatoes.

(2.5 marks)

c) An increase in the incidence of heart disease in Australia.

(2.5 marks)

d) An increase in rents in Sydney.

Solutions

Expert Solution

Rahul Sunny answered 11 months ago

Next > < Previous

Related Solutions

Using supply and demand analysis of the market for reserves, show and explain what happens to...

Using supply and demand analysis of the market for reserves, show and explain what happens to the federal funds rate under the following situations: a. The Fed reduces reserve requirements b. A switch occurs from deposits into currency c. Banks expect a large increase in withdrawals from checking accounts d. The Fed conducts an open market sale of securities

Using supply and demand diagrams, show the effect of the following events on the market for...

Using supply and demand diagrams, show the effect of the following events on the market for sweatshirts. A hurricane in South Carolina damages the cotton crop. The price of leather jackets falls. All colleges require morning exercise in appropriate attire. New knitting machines are invented. Each original post should include four diagrams with an explanation for each. Respond and engage with at least two of your classmates. NOTE: diagrams can be created using a MS Office product, or drawn by...

Using Aggregate Demand and Supply analysis supported by a diagram, show the effect on an economy...

Using Aggregate Demand and Supply analysis supported by a diagram, show the effect on an economy of a fall in investment and explain how and in what ways government action as recommended by the OECD might stop economies falling into a recession. Word Limit: 200 words

Using the supply and demand analysis of the market for reserves, indicate what happens to the...

Using the supply and demand analysis of the market for reserves, indicate what happens to the federal funds rate (the cash rate in Australia), borrowed reserves, and nonborrowed reserves in the following situations holding everything else constant. (a) The Fed (central bank) raises the target federal funds rate. (b) The Fed (central bank) raises the interest rate on reserves above the current equilibrium federal funds rate (the cash rate).

Consider a tax on the producers in a market. By using supply and demand curves, show...

Consider a tax on the producers in a market. By using supply and demand curves, show the consumer surplus, producer surplus, the equilibrium price and quantity traded before tax. Now show the consumer surplus, producer surplus, equilibrium price and quantity traded after tax. Finally make sure to show the revenue of the tax and the deadweight loss associated with the tax. Now do the same exercise in part-c by assuming a tax on consumers. What happens to consumer surplus, producer...

Consider the market for labour. Using a supply and demand diagram, show the impacts of the...

Consider the market for labour. Using a supply and demand diagram, show the impacts of the following events on the market’s equilibrium wage and labour quantity. (a) An increase in immigration. (10%) (b) An infectious disease kills 30% of the workforce. (c) Workers gain skills that make them more productive

Use the supply and demand analysis of the market for reserves to explain the following situations....

Use the supply and demand analysis of the market for reserves to explain the following situations. If a switch occurs from deposits into currency, what happens to the federal funds rate? Why is it that a decrease in the discount rate does not normally lead to an increase in borrowed reserves? What happens to the federal funds rate, borrowed reserves, and nonborrowed reserves, holding everything else constant. The economy is surprisingly strong, leading to an increase in the amount of...

Consider the market for cell phones. For the following events, use Supply and Demand analysis to...

Consider the market for cell phones. For the following events, use Supply and Demand analysis to predict changes in equilibrium price and quantity of cell phones. a. The American Cancer Society announces scientific proof linking cell phone usage to cancer. b. The stock market soars, causing a rise in the general income of consumers. c. More efficient robots are developed and used on the cell phone assembly lines. d. The price of a cell phone increases. e. Consumers expect the...

4. Explain the effect of each event on demand and supply in the specified market. Use...

4. Explain the effect of each event on demand and supply in the specified market. Use a graph (or graphs) to show the effect on the equilibrium price and equilibrium quantity. [3 marks each] a) Early frost destroys a large percentage of the Canadian wheat crop. How does this affect the wheat market? b) Scientists discover health benefits from drinking tea. How does this affect the market for coffee? c) The World Health Organization (WHO) announces that processed meat causes...

22. Using the supply and demand analysis of the market for reserves, indicate what happens to...

22. Using the supply and demand analysis of the market for reserves, indicate what happens to the federal funds rate, borrowed reserves, and nonborrowed reserves, holding everything else constant, under the following situations: d) The Fed raises the interest rate on reserves above the current equilibrium federal funds rate. e) The Fed reduces reserve requirements. f) The Fed reduces reserve requirements and then offsets this action by conducting an open market sale of securities.

Subjects