In today’s global economy, the number of firms in the market critically depends on the entry and exit decisions of foreign firms. Recently, several Chinese automakers including the biggest brand announced ambitions plans to expand abroad. For instance, Chery Automobile Co. already exports to 70 developing countries in Asia, the Middle East and Latin America and is eyeing further expansion into more developed With the aid of diagram, indicate what happen to supply curve if Citroen increase the price and explain
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In today’s global economy, the number of firms in the market critically depends on the entry and exit decisions of foreign firms. Recently, several Chinese automakers including the biggest brand announced ambitions plans to expand abroad. For instance, Chery Automobile Co. already exports to 70 developing countries in Asia, the Middle East and Latin America and is eyeing further expansion into more developed
With the aid of diagram, indicate what happen to supply curve if Citroen increase the price and explain.
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- Suppose that there are two companies that produce mobile phones: Brand A and Brand B. Explain how each of the following events will affect the market for Brand A phones by using supply and demand diagrams (mention the changes in equilibrium price and quantity): a) Price of Brand B phones increased. b) Brand A's factory's production capacity dropped because of a shortage in raw materials supplies. c) Brand A has developed a new technology that allows to assemble the phone's components in a cheaper way.Consider a market for solar energy panels as shown in the given graph. Due to a major breakthrough in terms of technological advancement in its manufacturing, the cost of production has gone down drastically. This causes the manufacturers of solar energy panels to shift their supply curve. Show the impact of this technological advancement on the supply curve of solar energy panels. Using the Line drawing tool, draw the new supply curve of solar energy panels. Carefully follow the instructions above and only draw the required object. What happens to the equilibrium price and quantity demanded after the supply curve of solar energy panels shifts? O A. Both price and quantity demanded increase. O B. Both price and quantity demanded decrease. O C. Price increases and quantity demanded decreases. O D. Price decreases and quantity demanded increases. Click the graph choose a tool in the palette and follow the instructions to create your graph Price of solar panels Graph Quantity of solar…Problem Following are four graphs and four market scenarios, each of which would cause a shift in either the demand or the supply curve of plastic bottled water. For each scenario, do the necessary changes on the graphs below by showing the new market equilibrium reached. You are also expected to mention the changing factor. An improvement of the water bottling industry occurred lately. The price of glass bottled water increased and this is a substitute in production for the firm. The price of plastic has increased. Assume that plastic bottled water is an inferior good, and that the Kuwaiti economy witnessed an increase in the average household income from 20,000KD to 25,000 KD. Kindly explain in detail
- The following graph displays four supply curves (HH, II, JJ, and KK) that intersect at point A. 200 180 160 140 B 120+ A 100 80 40 K 20 20 40 60 80 100 120 140 160 180 200 QUANTITY (Units) Using the graph, complete the table that follows by indicating whether each statement is true or false. Statement True False Between points A and D, curve JJ is elastic. Between points A and E, curve HH is unit elastic. Curve JJ is more elastic between points A and D than curve KK is between points A and C. PRICE (Dolars per unit) O oo12:57 Demand-Shift-Quiz.pdf Microsoft Word Demand Shift Worksheet.doc Demand Shift Worksheet A shift of demand is a movement of the entire demand curve & will result in a change in the equilibrium price & the equilibrium quantity. In the following 10 statements, determine what effect the event will have on the market for Burger King Whoppers in Oak Ridge. While you may want to say what happened to the price & quantity, for this exercise only consider the demand. Circle your selection for what would happen to the demand curve. Remember that a shift to the left is a decrease & a shift to the right is an increase. You may want to refer to the determinants of demand if you are not sure what the e effect of an event would be. What would happen to the demand for a Burger King Whopper in Oak Ridge if: 1. The Burger King store is the only store open when you are hungry. =>THE DEMAND CURVE WILL: Shift Left Stay the Same Shift Right The Y-12 Plant hires 200 new employees. =>THE DEMAND CURVE…TIMBER CRUNCH The demand and the supply of timber for construction in Australia are given by QD =120 - 20P QS = 40P We assume the market is perfectly competitive. 1) Calculate the price elasticity of demand and price elasticity of supply at the equilibrium price and quantity. 2) Due to Covid lockdowns, interstate transportation becomes difficult. Meanwhile, construction work is viewed as essential and therefore not affected by lockdowns. Use a demand and supply graph to explain how the lockdowns affect the equilibrium price and quantity. 3) Bushfires are more likely to happen in summer. If a bushfire happens again in the coming summer, how would you expect it to affect the timber market?
- Carefully explain what is happening in the following market indicate the impact if any on demand, supply, price, and quantity. In the new academic year the university mandates that all new students must take principles of economics as a core requirement for their majors. Concurrently, the bookshop made their order for principles of economics textbook based on the number of registered students in the previous academic year. Hint: in the previous academic year only economics and management studies majors were required to take principles of economics. Impact on supply:_____________ Impact on price:_____________ Impact on quantity:______________ Impact on demand: _______________ USE THE OPTIONS BELOW TO FILL IN THE BLANK SPACES: Impact on supply Change in quantity is uncertain decrease equilibrium price Increase towards equilibrium shift towards / to right Excess demand decrease towards equilibrium Shift inwards / to lift Increase equilibrium quantity excess supply shift outwards / to…A student was asked to draw a demand and supply graph to illustrate the effect on the market for premium bottled water of a fall in the price of electrolytes used in some brands of premium bottled water, holding everything else constant. She drew the graph to the right and explained it as follows: "Electrolytes are an input to some brands of premium bottled water, so a fall in the price of electrolytes will cause the supply curve for premium bottled water to shift to the right (from S, to S₂). Because this shift in the supply curve results in a lower price (P₂), consumers will want to buy more premium bottled water and the demand curve will shift to the right (from D, to D₂) We know that more premium bottled water will be sold, but we can't be sure whether the price of premium bottled water will rise or fall. That depends on whether the supply curve or the demand curve has shifted farther to the right. I assume that the effect on supply is greater than the effect on demand, so I show…Suppose that Paolo and Sharon are the only suppliers of collectible action figures in a particular market. The following table shows their annual supply schedules: Price Paolo's Quantity Supplied Sharon's Quantity Supplied (Dollars per action figure) (Action figures) (Action figures) 10 A-Z 4 8. 18 6. 12 24 8. 14 28 10 16 30 On the following graph, plot Paolo's supply of collectible action figures using the green points (triange symbol). Next, plot Sharon's supply of collectible action figures using the purple points (diamond symbol). Finally, plot the market supply of collectible action figures using the orange points (square symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. 12 Paolo's Supply 10 Sharon's Supply MacBook Air F12 F11 F10 F9 FB F7 F6 吕0 F5 O00 F4 F3 * delete &
- Consider the market for pens. Suppose that new research has been published stating that the process of writing, erasing, and rewriting improves memorization, leading parents to avoid giving their children pens in favor of pencils. Further, the price of plastic, a major input in the pen production process, has dropped sharply. On the following graph, labeled Scenario 1, indicate the effect these two events have on the demand for and supply of pens. 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. image 1 image 2 Compare both the Scenario 1 and Scenario 2 graphs. Notice that after completing both graphs, you can now see a difference between them that wasn't apparent before the shifts because each graph indicates different magnitudes for the supply and demand shifts in the market for pens. Use the results of your…Consider a market for Tea a normal good in Karachi. You are supposed to analyze and discuss the effect on the equilibrium output and the price in the Tea market in Karachi for the October, 2020 after the following changes (Other things held constant). In each case, explain your answer using supply and demand diagram. There has been a decrease in people’s income and a rise in the price of sugar (an input for making Tea) in Pakistan during 2020 due to COVID-19 crisis simultaneously. Price of the coffee falls in the month of October 2020 in Karachi.Consider the market for children’s books. Suppose that more parents started to educate their children at home during the coronavirus pandemic and needed more educational materials, including children’s books, to do so. At the same time, lots of publishers printing children’s books shut down due to a large number of workers preferring to stay at home due to safety reasons and home responsibilities. What was the effect of the events described above on the supply of and demand for children’s books? A) Demand decreased; supply decreased. B) Demand increased; supply increased. C) Demand increased; supply decreased. D) Demand decreased; supply decreased.