Explain the effects of the following events an demand and or supply a) It is discovered...

Explain the effects of the following events an demand and or supply a) It is discovered that oranges can cure (bad skin/spot) . b) Anew machine is developed that will automatically pick oranges c) The price of grapefruits, a close substitute of oranges increases. d ) A craze of horse riding e) Govt raises minimum wages to $15.00.

Solutions

Expert Solution

Answer A) -demand curve will shift rightwards, demand will increase .

It is discovered that oranges can cure (bad skin/spot)-

Due to it demand for oranges will increase and demand curve will shift rightwards.

Answer B) Supply curve will shift rightwards, supply will increase.

Anew machine is developed that will automatically pick oranges. Due to the technological enhancement cost of picking oranges will reduce and supply will increase.

Answer c) Demand of grapes will decrease and impact on oranges demand is uncertain.

The price of grapefruits, a close substitute of oranges increases. Demand of grapes will decrease and impact on oranges demand is uncertain. The reason is that they are not perfect substitutes. They are close substitutes. Increase in price of grapes will decrease the demand of grapes and demand curve will shift leftwards.

Answer D) demand curve will shift rightwards, demand will increase .

A craze of horse riding. Due to it people want to do more horse riding and demand for horse riding will increase.

Answer E) Increase in supply of labor. Supply curve of labor shift rightwards due to Govt raises minimum wages to $15.00.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Question 3. Explain the effects of the following events on Aggregate Demand or Aggregate Supply curves...

Question 3. Explain the effects of the following events on Aggregate Demand or Aggregate Supply curves (AD/ SAS decreases or increases) - Specify the shift in AD/SAS curve and indicate what happens to the equilibrium price level and RGDP (a). An increase in Government Spending (b). Political conflicts leading business owners to become pessimistic about business's profitability (c). An earthquake was large enough to cause a cut back in the supply of fuel (d). A 5% tax is placed on...

For each of the following, explain the possible effects on demand and/or supply and equilibrium price...

For each of the following, explain the possible effects on demand and/or supply and equilibrium price and quantity of spiral bound notebooks using a correctly labeled supply and demand graph. Assume the market for spiral bound notebooks is in equilibrium. All students in public schools need notebooks of some type when they attend classes. For each of the following, explain the possible effects on demand and/or supply and equilibrium price and quantity of spiral bound notebooks using a correctly labeled...

Using the aggregate demand and aggregate supply model, explain the effects of the following on price...

Using the aggregate demand and aggregate supply model, explain the effects of the following on price and real income in Malaysia. 1. Consumers are worried with the country’s economic progress. 2. Firms have begun to use more high-tech machineries for production. 3. The Malaysian government has decided to spend on a major revamp of the public transportation system. 4.Malaysian higher education system has produced highly skilled employees.

Using the aggregate demand and aggregate supply model, explain the effects of the following on price...

Using the aggregate demand and aggregate supply model, explain the effects of the following on price and real income in Malaysia. The Malaysian government has decided to spend on a major revamp of the public transportation system.

Using the aggregate demand and aggregate supply model, explain the effects of the following on price...

Using the aggregate demand and aggregate supply model, explain the effects of the following on price and real income in Malaysia. Draw diagram for each question. (a) Consumers are worried with the country’s economic progress. [10 marks] (b) Firms have begun to use more high-tech machineries for production. [10 marks] (c) The Malaysian government has decided to spend on a major revamp of the public transportation system. [10 marks] (d) Malaysian higher education system has produced highly skilled employees. [10...

Using the aggregate demand and aggregate supply model, explain the effects of the following on price...

Using the aggregate demand and aggregate supply model, explain the effects of the following on price and real income in Malaysia. (a) Consumers are worried with the country’s economic progress. [10 marks] (b) Firms have begun to use more high-tech machineries for production. [10 marks] (c) The Malaysian government has decided to spend on a major revamp of the public transportation system. [10 marks] (d) Malaysian higher education system has produced highly skilled employees. [10 marks]

Question 3 Using the aggregate demand and aggregate supply model, explain the effects of the following...

Question 3 Using the aggregate demand and aggregate supply model, explain the effects of the following on price and real income in Malaysia. (a) Consumers are worried with the country’s economic progress. [10 marks] (b) Firms have begun to use more high-tech machineries for production. [10 marks] (c) The Malaysian government has decided to spend on a major revamp of the public transportation system. [10 marks] (d) Malaysian higher education system has produced highly skilled employees. [10 marks]

Describe the effect of each of the following events on either the demand or supply of...

Describe the effect of each of the following events on either the demand or supply of gasoline in the USA. Further indicate the likely direction in the amount of gasoline exchanged AND the expected market price (both) when: a. domestic incomes fall. b. the price of electrical automobiles falls. c. A new shale oil field is discovered and put into service. d. The average price of rice falls in Japan. (Provide answers to all parts of the question)

For each of the following events, -State if the demand for loanable funds or the supply...

For each of the following events, -State if the demand for loanable funds or the supply of loanable funds (or neither) will be affected -Then state if the curve will increase or decrease -Finally indicate the direction of the shift(left or right) Events: A. The government deficit increases. B. People decide to save more C. Net capital outflow increases at each interest rate. D. Domestic investment increases at each interest rate.

Describe the effect of each of the following events on either the demand or supply of...

Subjects