Question

a) A new technology is developed to pick peaches b) The government allows more furniture imports from China c) Interest rates are lowered to help spur the economy d) The cost of rubber which is used in the manufacturing of tires increases e) The government imposes a tax on imports of foreign cars

I need it in english words please. no need for graphs.

What happens to supply, price, and quantity

example: a) peaces supply will increase, the price will drop, the quantitiy will go up. ( same thing for all of them) please make sure it is correct.

Answer 1

A.

A new technology is going to decrease the cost and increase the productivity. It will cause, supply to increase, as supply curve shifts to the right. It increases the quantity (go up) and price decreases or drops.

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B.

Increase in import, will cause increase in supply and supply curve shifts to the right. It makes price to drop and quantity to increase and go up.

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C.

A lower interest rate helps increase in demand and demand curve shifts to the right. it makes quantity supplied to increase (but not supply) along the supply curve. It makes price and quantity to increase and go up at a new equilibrium.

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D.

Increase in the cost of rubber, increases the cost of production, making supply to decrease and supply curve shifts to the left. It makes price to increase and go up, while quantity to decrease and drop at the new equilibrium.

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E.

The tax on imports, decreases the supply in the market. It causes price to increase and go up while quantity decreases at the new equilibrium.