Predict the impact on each market. Use + and – to indicate whether there will be an increase or decrease in demand (D), supply (S), equilibrium price (P) and equilibrium quantity (Q). If there is no change, use N, and if the change cannot be predicted, use U for uncertain. Market Event D S P Q Canadian Wine Early frost destroys a large percentage of the grape crop - - + - Wood-burning The price of heating oil and natural gas triples + stoves Cell phones Technological advances reduce the costs of producing cell phones Gold Large gold deposits are discovered Fast foods The public show great concern over high sodium and cholesterol in fast foods; also, there is an increase in the minimum wage Bicycles There is increasing concern by consumers about physical fitness; also, the price of gasoline falls.
Predict the impact on each market. Use + and – to indicate whether there will be an increase or decrease in demand (D), supply (S), equilibrium price (P) and equilibrium quantity (Q). If there is no change, use N, and if the change cannot be predicted, use U for uncertain. Market Event D S P Q Canadian Wine Early frost destroys a large percentage of the grape crop - - + - Wood-burning The price of heating oil and natural gas triples + stoves Cell phones Technological advances reduce the costs of producing cell phones Gold Large gold deposits are discovered Fast foods The public show great concern over high sodium and cholesterol in fast foods; also, there is an increase in the minimum wage Bicycles There is increasing concern by consumers about physical fitness; also, the price of gasoline falls.
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 25RQ: How does one analyze a market where both demand and supply shift?
Related questions
Question
Predict the impact on each market. Use + and – to indicate whether there will be an
increase or decrease in demand (D), supply (S),
quantity
for uncertain.
Market | Event | D | S | P | Q |
Canadian Wine | Early frost destroys a large percentage of the grape crop | - | - | + | - |
Wood-burning | The price of heating oil and natural gas triples | + | |||
stoves | |||||
Cell phones | Technological advances reduce the costs of producing cell phones | ||||
Gold | Large gold deposits are discovered | ||||
Fast foods | The public show great concern over high sodium and cholesterol in fast foods; also, there is an increase in the minimum wage | ||||
Bicycles | There is increasing concern by consumers about physical fitness; also, the price of gasoline falls. |
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