Suppose investment tax incentives increase AND the government deficit decreases (assume each curve shifts the same amount). So 10 8 2 D. 200 400 600 800 1000 1200 LOANABLE FUNDS (BILLIONS) 1) Using the graph above as a guide, which way would the Supply and/or Demand curve(s) shift? It can shift Supply, Demand, both, or neither. 2) Approximate the new equilibrium. (You may need scratch paper). What is the new equilibrium interest rate AND amount of loanable funds available? REAL INTEREST RATE (%)

Suppose investment tax incentives increase AND the government deficit decreases (assume each curve shifts the same amount). So 10 8 2 D. 200 400 600 800 1000 1200 LOANABLE FUNDS (BILLIONS) 1) Using the graph above as a guide, which way would the Supply and/or Demand curve(s) shift? It can shift Supply, Demand, both, or neither. 2) Approximate the new equilibrium. (You may need scratch paper). What is the new equilibrium interest rate AND amount of loanable funds available? REAL INTEREST RATE (%)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 6E

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In 2018, a cold front in Barbados increased both the demand for water heaters andgasolines. The usage of gasoline was 581 tonnes, an increase from 499 tonnes in theprevious year. The Petroleum Company of Barbados advised Government officials thatdemand could outweigh supply and asked companies to increase the supply. They alsoasked major gasoline users, such as power plants, to reduce demand. i. Illustrate the effect of the cold front on the demand for gasoline using a demandcurve diagram over the two years. ii. Assuming the Petroleum Company of Barbados did not issue a directive for anincrease in supply and a decrease in demand, explain the problem that would existin the economy and how would this be corrected over time.
Now let's say 8 is still at 4, however, 4 is now at 2 for equilibrium, How would I go about calculating the increase?
The market demand for productXis given by: \[ Q_{d}=6-1 / 2 P \text { or } P d=12-2 Q \] The market supply for goodXis given by: \[ Q_{s}=-14+2 P \text { or } P s=7+1 / 2 Q \] whereP=price per unit andQis number of units. Draw a supply-and-demand graph with these curves. 1.) Using the line drawing tool, draw the supply and demand curves. Properly label your lines. 2.) Using the point drawing tool, plot the equilibrium point. Label your point 'E'. Note: Carefully follow the instructions above and only draw the required objects. The equilibrium price is$and the equilibrium quantity is unit(s). (Enter your responses as integers.) A per-unit excise tax is imposed on suppliers of productX, and the market supply with the tax is now given by: \[ Q_{s}=-19+2 P \text { or } P s=9.50+1 / 2 Q \] Using the graph on the right, show this supply curve. 1.) Using the line drawing tool, draw the new supply curve. Label your line 'S1+tax'.1. Note: Carefully follow the instructions above and only draw…
5. Can the supply chain handle the necessary changes? Before an organization commits toramping up its input, it is essential to confirm that its supply chain will be able to handlerelated requirements.
Market Equilibrium, disequilibrium, Floor and Ceiling Prices, CS, PS, DWLBased on the following functions, compute for the:Demand: P = 1200 – 4QSupply : P = 655 + 2Q Draw the graph for items (2-3) Determine the amount of CS (Red) Determine the amount of PS (Blue) What is the Total Benefit?
President Biden has proposed a $2.2 trillion Infrastructure package to repair roads and bridges. Some policy analysts think that at least one part of the funding will be an increase in the federal excise tax on gasoline. Suppose the size of this increase in excise tax is written as t. Using a graph analyze and explain the impact of this t dollars per gallon increase in excise tax on gasoline. Which of the curve(s), if any, would shift, and why? Graphically, show the new equilibrium price and quantity (labeling it P1 and Q1). At the new equilibrium, please determine how much of the tax increase was borne by gasoline consumers and how much was absorbed by gasoline sellers? Indicate the incidence of taxation for both consumers and sellers on the graph and explain. What will determine whether consumers or sellers will bear a higher relative burden of taxation? Please explain in detail.
In 2018, a cold front in Barbados increased both the demand for water heaters andgasolines. The usage of gasoline was 581 tonnes, an increase from 499 tonnes in theprevious year. The Petroleum Company of Barbados advised Government officials thatdemand could outweigh supply and asked companies to increase the supply. They alsoasked major gasoline users, such as power plants, to reduce demand. Illustrate the effect of the cold front on the demand for gasoline using a demandcurve diagram over the two years.
Market Equilibrium, disequilibrium, Floor and Ceiling Prices, CS, PS, DWLBased on the following functions, compute for the:Demand: P = 1200 – 4QSupply : P = 655 + 2Q Determine the amount of CS (Red) Determine the amount of PS (Blue) What is the Total Benefit?
The immediate effect of gasoline price increases in the aftermath of the Persian Gulf in August 1990 on gasoline consumption was not very significant. Would you expec consumption of gasoline to be more severely affected if these higher prices remain effect for a year or more? Why or why not?
a You are given the following information about the Limassol District: Number of households 2022: 148,100 Total residential stock 2022: 159,059 units Based on the above data, calculate the expected gap between demand and supply in number of housing units in Limassol in 2022. Show clearly and explain any calculations and/or assumptions you make to support your answer. Also, explain the state of the market represented by the result of your calculation (oversupply, balance, excess demand) and how house prices should move in 2022 asaLesult of this situation. b. Based on the figures given in (a) what will be the vacancy.rate in the Limassol housing market. in 20222 Clearly show and explain your calculations.
This question is related to equilibrium and its drive? all detail is given in a snap.
3. Suppose that the economy is characterized by the following behavioral equations: C = 160 + 0.6Yd, I=150, G = 150, T = 100. Solve for the following variables. (a) Equilibrium GDP (Y) (b) Disposable income (YD) (c) Consumption spending (C) 4. Use the economy described above. (a) Solve for the equilibrium output. Compute total demand. Is it equal to production? Explain. (b) Assume that G is now equal to 110. Solve for equilibrium output. Compute total demand. Is it equal to production? Explain. (c) Assume that G is equal to 110, so output is given by your answer to (b). Compute private plus public saving. Is the sum of private and public saving equal to investment? Explain.