A stock market bust leads to a decrease in wealth in the economy. What happens to equilibrium price and RGDP in the economy? O 1) Equilibrium price and equilibrium RGDP increase. O2) Equilibrium price and equilibrium RGDP decrease. 3) Equilibrium price will rise and equilibrium RGDP will fall. 4) Equilibrium price will fall and equilibrium RGDP will rise.
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- Illustrate and explain how the market for milk in the US economy will maintain equilibrium over time given the problem that will exist with current demand conditionsConsider the apple-juice market. Demand for apple-juice is given by: P = 66 - 4QD and supply of apple-juice is given by: P = 40 + 5Qs- i. What is the equilibrum price of a liter of apple-juice? Give your answer in two decimal places. ii. What is the equilibrum quantity of a liter of apple-juice? Give your answer in two decimal places. Suppose, the current market price for a liter of apple-juice is 62.0 in the market. iii. At this price level, which of the following options best characterize the market of apple-juice? 1 The market clears 2 Shortage in the market 3 Surplus in the market 4 The governmant has imposed tax worth around 8 per unit iv. Calculate the size of market surplus/shortage in the market at this price level. Give your answer in two decimal places. Suppose the new demand for apple-juice is: P = 56 - 4QD. vii. Calculate the new equilibrium price of apple-juice. Give your answer in two decimal places. viii. Calculate the new equilibrium quantity of apple-juice. Give your…C- If the consumer income increases by 20%, what will happen to the equilibrium price and guantity.
- b. The equilibrium price of printers saw a large decrease in the past year, howeverthe equilibrium quantity remained unchanged. Three individuals provided anexplanation for the situation. Which explanation(s) could be correct? Explain.• Alex: Demand increased, but supply was totally inelastic.• Lance: Supply increased, but so did demand.• Ricardo: Supply decreased, but demand was totally inelastic C.The demand for pancakes is given by Qd = 40 – 5P and the supply is given byQs = 10P – 20, where P = price What is the equilibrium price and equilibriumquantity? i. The price for iPhones in Barbados has increased significantly. Demand for thecellular device has also increased. This is contrary to the law of demand. Doyou agree or disagree? Explain your answer. ii. Identify the flaw in this analysis: “If more Jamaicans become vegetarians, thedemand for beef will fall. The decrease in the demand for beef will cause theprice of beef to fall. The lower price, however, will then increase the…Suppose economy is equilibrium at point E. Now due to cold weather demand for ice cream decreases. Moreover, there is technological advancement and now firms can produce more ice creams in short time. Explain how will it affect demand and supply schedule and what will be the new equilibrium price and quantity? Hint: May be either price or quantity ambiguous.Discuss clearly how the following items may affects the change in demand. Population change Prices of related goods Expected future prices, income, and credit
- Evaluate the effect of changes in supply and demand on theequilibrium price and quantity.If the future price of oil is expected to be lower than the current price both consumers and producers of crude oil expect crude oil prices to decrease in the near future show and explain the impact of these expectations on the market for crude oil, ceteris paribus?When due to rise in price of a good, total expenditure on the good also rises, then demand is _________
- Consider the following events:a. The price of cell phones goes down by 25 percent during a sale.b. You get a 25 percent raise at your job.Which event represents a shift in the demandcurve? Which represents a movement along thecurve? What is the difference?Calculate the equilibrium quantity and equillibrum price given:- Demand equation:- P = 100Q-30 Supply equation:- P = 70Q + 90The economists at JET Consulting consider steak to be a normal good. During a recession, when the income in the economy is decreasing, economists at JET Consulting would expect the demand curve for steak to causing the equilibrium price to and the equilibrium quantity to Select one: a. Shift to the left; decrease; decrease b. Shift to the left; increase; increase c. Shift to the right; decrease; increase d. Shift to the right; increase; increase e. Shift to the left; increase; decrease Notes