ECO-205 Lecture Notes - Lecture 2: Normal Good, Demand Curve, Economic Equilibrium

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amberporcupine478

4 Dec 2017

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Demand curve will shift to the right price of good goes up, quantity also goes up. Explain each of the following using supply-and-demand diagrams: when a cold snap hits florida, the price of orange juice rises in supermarkets throughout the country . The price will rise and the quantity will decrease. The supply curve will move to the left: when a war breaks out in the middle east, the price of gasoline rises and the price of a used. Demand curve for cadillac"s will shift to the left because gas prices are rising. For each of the events listed here, identify which of the determinants of demand or supply are affected. Also indicate whether demand or supply increases or decreases. Then draw a diagram to show the effect on the price and quantity of minivans: people decide to have more children. Will effect demand curve, it will shift to the right.

Related Questions

Explain how each of the following statements will affect the supply-and-demand.

A) When a cold snap hits Florida, the price of orange juice rises in supermarkets throughout the country.

B) When the weather turns warm in New England every summer, the price of hotel rooms in Caribbean resorts plummets.

C) When a war breaks out in the middle east, the price of gasoline rises, and the price of used Cadillacs falls.

ceruleanwolf844

Your job is to determine if it will shift the demand curve or supply curve and the effects on quantity demanded, quantity supplied, and price. Please show all work.

1.) A trade agreement with Venezuela increases the costs to coffee breweries for coffee beans. What happens in the market for brewed coffee? Which curve shifts? What happens to quantity supplied, quantity demanded, and price?

2.) If the price decreases for the plastic used in packaging hot dogs, what will happen to the market for hot dog buns?

3.) A food and drug report tells consumers eating at least one orange a week may increase your life expectancy. What happens in the market for oranges?

4.) Suppose there is a cold snap in early spring and it kills many of the orange crops in Florida. What would happen in the market for orange juice? What about the market for apple juice?

5.) Blu-ray players in the last few years have been coming down in price due to changes in technology. What happens to the demand for blu-ray DVDs?

coffeeox753

1. In economics, the demand for a good refers to the amount of the good that people:
a. Will buy at alternative income levels
b. Need to achieve a minimum standard of living.
c. Will buy at various prices
d. Would like to have if the good were free
2. The term ceteris paribus means that:
a. What is for the individual is not necessarily true for the whole
b. All variables except those specified are constant
c. Everything is variable
d. No one knows which variables will change and which will remain constant.
3. When economist talk about supply, they are referring to a relationship between price received for each unit sold and the ____________________.
a. Quantity supplied
b. Demand schedule
c. Demand curve
d. Market price
4. But nearly all supply curves share a basic similarity: they slop______________.
a. Up from left to right
b. Down from left to right
c. Up from right to left
d. Down from right to left
5. The nature of demand indicates that as the price of a good increases:
a. Suppliers wish to sell less of it.
b. Buyers desire to purchase less of it
c. More of it is desired
d. More of it is produced
6. Any given demand or supply curve is based on the certeris paribus assumption that _______.
a. Everything is variable
b. All else is held equal
c. No one knows which variables will change and which will remain constant
d. What is true for the individual is not necessary true for the whole.
7. Economist refer to the relationship that a higher price leads to lower quantity demand as the ______________.
a. Price model
b. Law of demand
c. Market equilibrium
d. Income gap
8. A perfect elastic supply curve is:
a. Vertical
b. Downward sloping to the left
c. Horizontal
d. Upward sloping to the right
9. A 10 percent increase in the price of soda leads to a 20 percent increase in the quantity of iced tea demanded. It appears that:
a. Elasticity of demand for iced tea is 2 and is elastic
b. Cross-price elasticity of demand for iced tea is -2
c. Cross-price elasticity of demand for soda is -0.5
d. Elasticity of demand for soda 0.5 AND IS INELASTIC
10. ___________ is the change in what is on the horizontal axis (quantity) divided by the change in what is the vertical axis (price).
a. Elasticity
b. Supply
c. Demand
d. Revenue
11. A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of:
a. The supply curve and the rightward shift of the demand curve resulting in a higher equilibrium price
b. Both the supply and demand curves
c. The supply curve
d. The demand curve, as consumers try to economize because the shortage.
12. Got the answer.
13. A drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied; conversely, especially good weather would shift the _____________.
a. Demand curve to the right
b. Supply curve to the left
c. Supply curve to the right
d. Demand curve to the left
14. Interpret the following statements:

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ECO-205 Lecture Notes - Lecture 2: Normal Good, Demand Curve, Economic Equilibrium

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