(a) Suppose that tacos and pizza are substitutes, and that soda and pizza are complements. What effect will the increase in the price of pizza have on the market for tacos and market for sodas? Briefly explain your graphical analysis for each graph. (two separate graphs for sodas and tacos markets)
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- Suppose both the demand for olives and the supply of olives decline by equal amounts over some time period. Use graphical analysis to show the effect on equilibrium price and quantity. Instructions: On the graph below, use your mouse to click and drag the supply and demand curves as necessary. Price of olives Quantity of olives S₁ OSuppose both the demand for olives and the supply of olives decline by equal amounts over some time period. Use graphical analysis to show the effect on equilibrium price and quantity. Instructions: On the graph below, use your mouse to click and drag the supply and demand curves as necessary. D1 Quantity of olives Price of olives8. Shifts in supply or demand I The following graph shows the market for donuts in Dallas, where there are over 1,000 donut shops at any given moment. Suppose a new scientific study shows that Dallas is the most polluted city in the world. Due to health concerns, a significant number of families move out of the city. Show the effect of this change on the market for donuts by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per donut) QUANTITY (Donuts) Supply Demand Demand If donuts are a normal good, this will cause the demand for donuts to 0 Supply ? Now suppose Congress passes a new tax that decreases the income of Dallas residents.
- Attempts 3. Determinants of demand The following graph shows the demand curve for sedans in New York City. For simplicity, assume that all sedans are identical and sell for the same price. Initially, the graph shows market demand under the following circumstances: Average household income is $50,000 per year, the price of a gallon of regular unleaded gas is $4 per gallon, and the price of a subway ride is $3.00. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Thousands of dollars per sedan) 40 curve. 30 20 10 Average / 8 0 0 Demand for Sedans. Demand 100 200 300 400 500 600 700 800 900 QUANTITY (Sedans per month) Graph Input Tool Demand for Sedans A decrease in average income causes a leftward Price of a sedan (Thousand of dollars) Quantity Demanded (Sedans per month)…The following graph plots the market for electric guitars in Houston, where there are always over 1,000 music stores. Suppose the price of acoustic guitars decreases. (Assume that people regard electric guitars and acoustic guitars as substitutes.) Show the effect of this change on the market for electric guitars by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per guitar) Supply Demand Demand 1 SupplyPrice (Dollars per bottle) 2 PRICE (Dollars per bottle) On the following graph, plot Gilberto's demand for laundry detergent using the green points (triangle symbol). Next, plot Juanita's demand for laundry detergent using the purple points (diamond symbol). Finally, plot the market demand for laundry detergent using the blue points (circle symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. D 4 6 8 10 10 Gilberto's Quantity Demanded Juanita's Quantity Demanded (Bottles) (Bottles) 15 32 12 24 8 16 4 12 0 8 16 24 32 QUANTITY (Bottles) 40 Gilberto's Demand Juanita's Demand -O- Market Demand
- The following graph shows the market for cereal in Philadelphia, where there are over 1,000 stores that sell cereal at any given moment. Suppose the price of breakfast bars decreases. (Assume that people regard cereal and breakfast bars as substitutes.) Show the effect of this change on the market for cereal by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.8. Shifts in supply or demand I The following graph plots the market for scones in Houston, where there are always over 1,000 bakeries, Suppose the price of donuts increases. (Assume that people regard scones and donuts as substitutes.) Show the effect of this change on the market for scones by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dolars per scone) Supply Demand Demand 1 Supply ?Price P₂ P1 Price ↓ (a) (c) D₂ D₁ Quantity Quantity Price (b) D₁ Quantity Main C
- The following graph plots the market for gyros in Philadelphia, where there are always over 1,000 gyro trucks. Suppose the price of hot dogs decreases. (Assume that people regard gyros and hot dogs as substitutes.) Show the effect of this change on the market for gyros by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and snaps back to its original position, just drag it a little farther. PRICE (Dollars per gyro) QUANTITY (Gyros) Supply Demand Demand Supply (? Now suppose Congress passes a new tax that decreases the income of Philadelphia residents. If gyros are a normal good, this will cause the demand for gyros to increase8. Shifts in supply or demand I The following graph plots the market for electric guitars in Chicago, where there are always over 1,000 music stores. Suppose the price of acoustic guitars decreases. (Assume that people regard electric guitars and acoustic guitars as substitutes.) Show the effect of this change on the market for electric guitars by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per guitar) QUANTITY (Guitars) Supply Demand Demand Supply ? Now suppose Congress passes a new tax that decreases the income of Chicago reside If electric guitars are a normal good, this will cause the demand for electric guitars to decrease increase11. Shifts in supply or demand I The following graph shows the market for hot dogs in Vancouver, where there are more than a thousand hot dog stands at any given moment. Suppose a new scientific study shows that Vancouver is the most polluted city in the world. Due to health concerns, a significant number of families move out of the city. Show the effect of this change on the market for hot dogs by shifting one or both of the curves on the following graph, holding all else constant. Supply Demand Supply Demand QUANTITY (Hot dogs) PRICE(Dollars per hot dog)