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Quantity of oranges in the market decreases

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1. What would be the likely effects of a $4.00 per pack increase in the excise tax on cigarettes?

2. Suppose the price of oranges increases and the quantity of oranges in the market decreases. Give two reasons why this might have happened.

3. Why has the price of computers dropped as their power and features have increased?

4. Why would an increase in the tariffs (taxes) on imported orange juice raise the price of American produced orange juice?

5. What is the difference between a shift in demand for snow blowers and an increase in the quantity of snow blowers demanded?

6. Explain how increases in consumer income changes demand for both normal and inferior goods.

7. Do consumers buy more of every good whose price has fallen? Explain.

8. Suppose the a freeze wipes out 30% of the Florida orange crop. How will this effect the equilibrium price of Florida oranges and California ornages?

9. Why do newspaper vending machines open up and allow you to take as many papers as you want, but candy machines do not?

10. What is the effect of a price ceiling on the quantity demanded of the product? What is the effect of a price ceiling on the quantity supplied? Why exactly does a price ceiling cause a shortage?

11. What would be the impact of imposing a price floor below the equilibrium price?

Reference no: EM131659810

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