Changes in price-effect on supply-demand
Course:- Microeconomics
Reference No.:- EM1367024

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Microeconomics

A. Assume that someone told you that an increase in price of DVD players caused the decrease in demand for DVDs. Is this what you would predict? Why or why not?

b. Suppose that someone told you that an increase in the price of gasoline caused a decrease in the demand for public transportation. Is this what you would predict? Why or why not?

c. Suppose an economic forecasting group has determined that an increase in the price of orange juice has no effect on the demand for soft drinks? What can you conclude from this information?

d. Suppose a decrease in consumers' incomes causes a decrease in the demand for chicken and an increase in the demand for potatoes. Which good is inferior and which is normal? Explain your reasons.

e. How will the equilibrium price and quantity change for each good?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
Using a supply-and-demand graph and assuming competitive markets, show and describe the effect on equilibrium price and quantity of the following: Increased graduations of new
The RAND (short for "research and development") Corporation is a think tank located on 15 prime acres of seaside property in the center of Santa Monica, California. RAND pur
Think about a firm that you have done business with recently. What industry does this firm belong to? For example, McDonald's is a firm in the fast food industry. What market
1. In the acquisition known as the _______, in 1853 the United States bought the land that currently constitutes the southern portions of the states of Arizona and New Mexico.
In this module you will prepare a report that discusses the pricing and distribution strategies. Research the following topics for the latest information concerning issues,
A simple random sample of size n = 210 is drawn from a population. The sample mean is found to be over bar above x = 20.1, and the sample standard deviation is found to be s=
A grocery store notices that the cross-price elasticity between ice cream and chocolate syrup is -.3. The store is advertising a sale with ice cream prices reduced by 20%.
For the situational analysis you are encouraged to provide any visual presentation of data in your situational analysis and use the analysis tools from your textbook and oth