Shifting SupplyDirections: Determine how each of the following scenarios will impact supply for the market indicated. Graph the shifton the graph, label each graph, identify the shifter and indicate if supply will increase, decrease or not change.EXAMPLEMarket: bicyclesScenario: New machinery cutsproduction time of bicycle chains inhalf.1. Market: BreadScenario: A drought hits the Midwest anddestroys 1/3 of wheat crops.2. Market: OilScenario: Producers expect the price of oilto increase in six months.3. Market: Hybrid CarsScenario: The government has enacted aprogram that gives subsidies to producers offuel efficient cars.4. Market: Desktop ComputersScenario: An increase in demand for laptopscauses laptop prices to increase 125%.5. Market: CerealScenario: Three new manufacturers enterthe breakfast cereal market.PVELSVyPPS S₁ Shifter: TechnologySPvVSSSQQQQName.DateQQChange in Supply: IncreaseShifter:urceChange in Supply: DecreaseShifter: ExpectationsChange in Supply: IncreaseShifter:Change in Supply:PeriodShifter:Change in Supply:Shifter:Change in Supply:© 2014 The Social Studies Emporium

Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Directions: Determine how each of the following scenarios will impact supply for the market indicated. Graph the shift on the graph, label each graph, identify the shifter and indicate if supply will increase, decrease or not change.

Directions: Determine how each of the following scenarios will impact supply for the market indicated. Graph the shift on the graph, label each graph, identify the shifter and indicate if supply will increase, decrease or not change.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 4SCQ: Many changes are affecting the market for oil. Predict how each of the following events will affect...

See similar textbooks

Related questions

Q: 3. Suppose the supply function for product X is given by Q = -30 +2Px - 4P₂. (L01) ✓a. How much of…

A: A supply function describes the relationship between price and quantity of goods supplied.

Q: n your own words, explain the monetary advantages patent rights may offer to individuals or groups,…

A: Introduction A patent is an exclusive right granted by a government to an individual or group to…

Q: Question 4. Cost of living and the unemployment A government agency collects the data on the…

A: Cost of living refers to the amount of money needed to maintain a certain standard of living in a…

Q: True/ False What is the advantage of involving in international trade for a nation.

A: The definition of international trade is the transfer of products, capital, and services across…

Q: 1. Harvey Habit's utility function is U (C₁, C2) = min {c₁, c2}, where c₁ is his consumption of…

A: Most options necessitate decision-makers taking into account costs and advantages at various times…

Q: If gasoline prices continue above $4.00 a gallon, what would tend to hap- pen to the demand for…

A: Wholesale gas prices are determined by the cost for energy suppliers to purchase gas from domestic…

Q: To investigate the impact of wage on the number of workers employed two models of labour demand are…

A: In a linear model with 2 explanatory variables tells that how the dependent variable is related to…

Q: Can you please directly answer the questions asked?

A: The rent ceiling is the maximum rent that a landowner can charge from the tenants. It is a type of…

Q: The nation of Potchatoonie produces hockey pucks, cases of root beer, and sandals. The following…

A: Introduction Gross Domestic Product (GDP) is a measure of a country’s national economic output. It…

Q: Suppose that every driver faces a 2% probability of an automobile accident every year. An accident…

A: If an insurance contract's premium is equal to the anticipated claims, it is referred to as being…

Q: What does price elasticity of demand mean for insurance companies and medical providers for making a…

A: Elasticity Elasticity is the % change in one variable associated with a 1% change in another.…

Q: 8. Consider a firm's short run and long run average costs depicted below: 300 270 240 210 180+ Wunt…

A: Average cost (AC) curve represents the relation between average total cost incurred by a firm of a…

Q: Consider a small exchange economy with two consumers, A and B, and two commodities, 2₁ and 12.…

A: Given: The utility function of A: U(x1A,x2A)=x1Ax2A The utility function of B: U(x1B,x2B)=2x1B+x2B

Q: A graph shows Quantity on the horizontal axis and Price in dollars on the vertical axis. The…

A: At the equilibrium price, quantity demanded equals quantity supplied and the market clears. When the…

Q: 2. Consider a competitive firm which uses three inputs K (capital), L (labor), and A (office space)…

A: Given production function Q=AK23LIt can be wriiten as :Q=A*K2/3L1/3Cost functionC=1*L+2*K+4*A

Q: Devlin-McGregor (https://devlinmacgregor.com/) is the sole producer of Provasic which is made using…

A: Given, Devlin-McGregor is the sole producer of Provasic which is made using only Soma. One unit of…

Q: Type out the correct answer ASAP with proper explanation of the each option.thank you. How do…

A: The natural, cyclical variation of economic activity in a market economy is referred to as the…

Q: 3. Under what circumstances an aggregate demand curve would shift either to the right or left?…

A: Aggregate demand is the total demand for the goods that are manufactured within a domestic territory…

Q: MERITS AND DEMERITS OF GLOBALIZATION

A: Globalization means freedom for a country to trade with other countries of the world. A country can…

Q: 3. Consider an economy with 2 consumption goods and n consumers, all with the same utility function:…

A: Introduction The balance between supply and demand determines an equilibrium price. Unless certain…

Q: Assume that a new minimum wage is binding in Delaware for Leah's company and that at this new…

A: Binding minimum wage means that minimum wages set by government are above the equilibrium wages.…

Q: Statement Between points V and Z, curve MM is unit elastic. Between points V and Y, curve 00 is…

A: The elasticity of supply measures the responsiveness of change in quantity supply to change in…

Q: Group 1 countries reduce their demand for oil by 60 units through aggressive conservation policies…

A: The world equilibrium price is determined by the intersection of the world demand curve and the…

Q: Implementation of carbon pricing in the gasoline market would cause ______ shift of the supply…

A: Cost of production and cost of inputs is a very important determinant of the supply of the good in…

Q: What is the market equilibrium price and what is the market equilibrium quanity and why?

A: Introduction The price where the consumer and producer agree to coincide or exchange the commodity…

Q: 4) The demand for labor by an industry is given by the curve L = 1200 - 10w, where Lis the labor…

A: Disclaimer Since you have asked multiple question, we will solve the first question for you. If you…

Q: The total cost of producing x items of product A and y items of product B is C(x, y) = 22x 2 + 8y 2…

A: Production costs imply all of the direct and indirect costs businesses face from manufacturing goods…

Q: You may be tempted to think you’re all set once you have a checking account, but it’s important to…

A: Checking accounts are the accounts that help to use the money whenever required. They are considered…

Q: Compare the characteristics of monopolistic competition (MC) and oligopoly (O) based on the…

Q: The bank of Canada is increasing interest rates to reduce canada's high inflation rate to the BANK…

A: Macroeconomics is the branch of economics that studies how an economy functions as a whole. GDP,…

Q: How much must be invested now to grow to $30,000 in 7 years with an interest rate of 4% compounded…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: The city government considers investing on a theme park to be located near the shore. The estimated…

A: To assess the acceptability of the proposal, we will use the Benefit-Cost Ratio (B/C Ratio). The B/C…

Q: The GDP per capita (labor) in the US is 2.95 times of that in Mexico. Also it is found that the…

A: Following inputs are given in the question: GDP Per Capita (labor) US / = 2.95 GDP…

Q: 1. Given the utility function U = 1/2 1/3 (a) Determine the value of the marginal utilities (b)…

Q: what would be the present value of the bond if the bond has 3 years to maturity instead of one?…

A: The present value formula is used here: P = F/(1+R)t P : present value F : future value R : rate…

Q: Diogo has a utility function: U = 100X920.1 The price of X is p, = $10, the price of Z is p₂ = $4,…

A: Given information: U = 100X0.9Z0.1 --------------> Utility function --------------------------…

Q: When I was considering what to do with my $10,000 lottery winnings, my broker suggested that I…

A: The money spent to earn higher income in the future is known as the investment. For the household…

Q: Consider the simple economy that produces only three products. Use the information in the following…

A: CPI refers that Consumer Price Index which means a measure of the average change overtime in the…

Q: Demography is the study of the structure of human populations – their size, age composition, gender…

A: Companies engaged in international business can offer a range of products and services to countries…

Q: 14 of 17 Attractive conditions in America such as better wages, new technology, and bigger living…

A: Immigration: The situation when the laborers of one economy voluntarily move to another economy…

Q: The reserve requirement, open market operations, and the moneysupply Consider a system of banking in…

A: Money supply refers to the total amount of money in circulation in an economy, including both…

Q: The market for good Q is perfectly competitive. However, it features negative externalities.…

A: A negative externality is a circumstance in the market when a person's actions will have a negative…

Q: 5. Understanding risk aversion Suppose your classmate Brian offers you a wager: He will choose a…

A: Risk aversion: Risk aversion implies the characteristic of an individual that implies his preference…

Q: B4 Using well-labeled supply and demand curves show how the following events will affect the market…

A: Since you have posted a question with multiple sub-parts, we will provide the solution to only the…

Q: National Income 700 154 Personal income taxes Other income not paid out 44 Corporate profits tax 50…

A: Personal income is the income earned by individuals and households in a country. The sources of…

Q: Illustrate the market for peanut butter as a result of the adoption of new technology that reduces…

A: Since you have asked multiple questions, we will provide the solution to only the first question as…

Q: Assume that apples cost $0.50 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $1.50 in…

A: Real GDP will be adjusted for inflation while the nominal GDP will be without the effect of…

Q: If the production function is F(K. L) = K 1/3 L 2 /3 , the wage rate is 5, and the rental rate of…

A: Given information: F(K,L) = K1/3L2/3 Where F(K, L) is a function of K and L. K is capital and L is…

Q: Your client is 32 years old. She wants to begin saving for retirement, with the first payment to…

A: Given Client's age = 32 years Annual payments, P= $11,000 Interest rate, r=9% Let us assume she…

Q: A new Telsa manufacturing plant in Sothern Ontario plans to start manufacturing Telsa Model 3 based…

A: Profit maximization is process which business firms undergo to ensure the best output and price…

Question

Shifting Supply
Directions: Determine how each of the following scenarios will impact supply for the market indicated. Graph the shift
on the graph, label each graph, identify the shifter and indicate if supply will increase, decrease or not change.
EXAMPLE
Market: bicycles
Scenario: New machinery cuts
production time of bicycle chains in
half.
1. Market: Bread
Scenario: A drought hits the Midwest and
destroys 1/3 of wheat crops.
2. Market: Oil
Scenario: Producers expect the price of oil
to increase in six months.
3. Market: Hybrid Cars
Scenario: The government has enacted a
program that gives subsidies to producers of
fuel efficient cars.
4. Market: Desktop Computers
Scenario: An increase in demand for laptops
causes laptop prices to increase 125%.
5. Market: Cereal
Scenario: Three new manufacturers enter
the breakfast cereal market.
P
VEL
S
Vy
P
P
S S₁ Shifter: Technology
S
P
v
V
S
S
S
Q
Q
Q
Q
Name.
Date
Q
Q
Change in Supply: Increase
Shifter:
urce
Change in Supply: Decrease
Shifter: Expectations
Change in Supply: Increase
Shifter:
Change in Supply:
Period
Shifter:
Change in Supply:
Shifter:
Change in Supply:
© 2014 The Social Studies Emporium

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. In each case, state how the event will affect the supply and demand diagram. Create a sketch of the diagram if necessary. Cars are becoming more fuel efficient, and therefore get more miles to the gallon. The winter is exceptionally cold. A major discovery of new oil is made off the coast of Norway. The economies of some major oil-using nations, like Japan, slow down. A war in the Middle East disrupts oil-pumping schedules. Landlords install additional insulation in buildings. The price of solar energy falls dramatically. Chemical companies invent a new, popular kind of plastic made from oil.
How does one analyze a market where both demand and supply shift?
Name some farm that can cause a shift in the supply curve in markets for goods and services.
How can you locate the equilibrium point on a demand and supply graph?
The following table summarizes information about the market for principles of economics textbooks: What is the market equilibrium price and quantity of textbooks? To quell outrage over tuition increases, the college places a $55 limit on the price of textbooks. How many textbooks will be sold now? While the price limit is still in effect, automated publishing increases the efficiency of textbook production. Show graphically the likely effect of this innovation on the market price and quantity.
If demand is inelastic, will shifts in supply have a larger effect on equilibrium price or on quantity?
Select the correct answer. A price floor will usually shift: demand supply both neither Illustrate your answer with a diagram.
If supply is inelastic, will shifts in demand have a larger effect on equilibrium price or on quantity?
Table 3.9 illustrates the markets demand and supply for cheddar cheese. Graph the data and find the equilibrium. Next, create a table showing the change in quantity demanded or quantity supplied, and a graph of the new equilibrium, in each of the following situations: The price of milk, a key input for cheese production, rises, so that the supply decreases by 80 pounds at every price. A new study says that eating cheese is good for your health, so that demand increases by 20 at every price.
Name some factors that can cause a shift in line demand curve in markets for goods and services.
What is the difference between the supply and the quantity supplied of a product, say milk? Explain in words and show the difference on a graph with the supply curve for milk.
The computer market in recent years has seen many more computing sell at much lower prices. What shift in demand or supply is most likely to explain this outcome? Sketch a demand and supply diagram and explain your reasoning for each. A rise in demand A fall in demand A rise in supply A fall in supply