1 illustrate the following incidents with supply and demand

Reference no: EM13372980

1) Illustrate the following incidents with supply and demand graphs indicating the change in equilibrium price and quantity. The market for

a. oranges. Apples, a substitute good, become more expensive.

b. cars. Steel, an input good for cars, becomes cheaper as tariffs are repealed.

c. food. A small baby boom increases the population.

d. sneakers. Tire demand shifts to the right. Both tires and sneakers use rubber as an input.

e. gasoline: Drivers expect prices to become higher in the near future.

2) It has been suggested that taxes should levied on junk food to discourage people eating it. Illustrate with a supply and demand graph what the effect of a tax would be, indicating the reduction in quantity, the revenue generated, the changes in surplus, and the deadweight loss. Make sure your labels are specific. Is it possible that this tax could ever have zero deadweight loss? Explain why or why not.

3) Illustrate with a graph how the PPF presents a strong rationale for the plausibility of the law of supply.

Reference no: EM13372980

Questions Cloud

Greener grass company ggc competes with its main rival : greener grass company ggc competes with its main rival better lawns and gardens blg in the supply and installation of

The hrb corporation is the worlds only manufacturer of air : the hrb corporation is the worlds only manufacturer of air filters for zamboni engines. last year hrb charged 20 per

Germany and japan star produce airplanes and cars with the : germany and japan star produce airplanes and cars with the following marginal products of labor. germany has 200

Johns lawn mowing service is a small business that acts as : johns lawn mowing service is a small business that acts as a price taker. suppose the market demand curve for mowing

1 illustrate the following incidents with supply and demand : 1 illustrate the following incidents with supply and demand graphs indicating the change in equilibrium price and

Production possibility charts1 draw a production : production possibility charts1. draw a production possibilities curve for mexico.2. use the two above charts to

Q1 suppose police become more efficient and we hire fewer : q1. suppose police become more efficient and we hire fewer police officers. what will happen to gdp?q2. assume a

The city of new orleans has 200 adverstising companies 199 : the city of new orleans has 200 adverstising companies 199 of which employ designers of normal ability at a salary of

Assessment taskyou are required to complete an academic : assessment taskyou are required to complete an academic essay which critically evaluates the application of either of

User Account

All Pages