describe how gas shortage is affecting the gas market, clearly identify how and why the demand side of the market is affected, and the supply side of the market is affected.? In which direction (to the right or to the left) will the demand curve shift? or the supply curve? As well as, will prices and quantity in equilibrium be higher or lower?
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describe how gas shortage is affecting the gas market, clearly identify how and why the demand side of the market is affected, and the supply side of the market is affected.? In which direction (to the right or to the left) will the demand curve shift? or the supply curve? As well as, will prices and quantity in equilibrium be higher or lower?
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- Note: this is an economics question. *Was the shortage of hand sanitizer, masks and disinfectant products during the covid-19 pandemic due to supply or demand? *Explain.Write whether each statement is True, False or Uncertain. You should explain your answer, including diagrams where appropriate. (a) When market demand and supply shift in opposite directions, we can un-ambiguously say how the equilibrium price and quantity change. (b) Innovations in the production of batteries lead to a rightward shift in the market supply for hybrid cars, while demand stays the same. Since this leads to a decrease in the equilibrium price and an increase in the equilibrium quantity, demand is more inelastic at the new equilibrium.How will the following event(s) affect demand and/or supply and equilibrium price (p*) and equilibrium quantity (q*) in a competitive market? Please describe whether the demand and/or supply curve shift right or left and the final impact on equilibrium price (P*) and equilibrium quantity (q*). You must say whether equilibrium price and quantity will go up, down, or if it cannot be determined (indeterminate or “?”). Market: paint. Event: a hailstorm forces some of the paint manufacturers to shut-down.
- Suppose economy is equilibrium at point E. Now due to cold weather demand for ice cream decreases. Moreover, there is technological advancement and now firms can produce more ice creams in short time. Explain how will it affect demand and supply schedule and what will be the new equilibrium price and quantity? Hint: May be either price or quantity ambiguous.How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitive market? That is, do price and quantity rise, fall, or remain unchanged, or are the answers indeterminate because they depend on the magnitudes of the shifts? a. Supply decreases and demand is constant. Price |(Click to select) ♥ and quantity (Click to select) V b. Demand decreases and supply is constant. Price |(Click to select) v and quantity (Click to select) V c. Supply increases and demand is constant. Price (Click to select) and quantity (Click to select) ♥ d. Demand increases and supply increases. Price |(Click to select) ♥|and quantity (Click to select) V e. Demand increases and supply is constant. Price |(Click to select) v and quantity (Click to select) V f. Supply increases and demand decreases. Price |(Click to select) ♥|and quantity (Click to select) V g. Demand increases and supply decreases. Price |(Click to select) ♥|and quantity (Click to…1. Which of the following will result in an uncertainty regarding any change that might occur in the equilibrium quantity but a definite increase in the equilibrium price? a) An increase in demand and a decrease in supply b) A decrease in demand and a decrease in supply c) A decrease in demand and an increase in supply d) An increase in demand and an increase in supply 2. In a production possibility frontier (PPF) graph it is observed that points 1,2,3, and 4 lie on the PPF, Point 5 is outside the PPF, and point 6 is inside the PPF. Which of the following statements is correct? a) Point 6 can be produced only if there is an increase in resource availability and/or an improvement in technology. b) Points 1-4 and 6 can be produced with the currently available resources and technology, but resources are used efficiently only at points 1-4. c) Point 5 can be produced with the currently available resources and technology, but the resource use is inefficient. d) Point 6 can be produced with…
- 1) At what price does Shortage and Surplus occur? Once a market has shortage and surplus, then what happens to the market price? 2) If a decrease in demand is smaller than a decrease in supply, what happens to an equilibrium price and output sales? 3) If Coke prices go down, what happens to Pepsi demand? Why?How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitive market; that is, do price and quantity rise, fall, or remain unchanged, or are the answers indeterminate because they depend on the magnitudes of the shifts? Use supply and demand to verify your answers. a. Supply decreases and demand is constant. b. Demand decreases and supply is constant. c. Supply increases and demand is constant. d. Demand increases and supply increases. e. Demand increases and supply is constant. f. Supply increases and demand decreases. g. Demand increases and supply decreases. h. Demand decreases and supply decreases.2. Winston is disappointed in the new SUV he recently purchased. He was excited about the new technology incorporated in his SUV but they did not live up to his expectations; therefore, please illustrate by constructing a supply and demand graph, the direction in which the curves will shift and state the new equilibrium price and quantity; for example, state whether price and quantity increased, decreased, or are indeterminate. Please explain your rationale based on the determinants of demand and supply.
- In each of the following scenarios, the market is initially in equilibrium. Determine the impact each event would have on the given market. SELECT THE CORRECT ANSWER IN EACH SITUATION 1. New advances in recycling technology reduce the cost of producing paper made from recycled material. a. Which of the following will occur in the market for paper made from recycled material? -supply will decrease -supply will increase -demand will decrease -demand will increase b. Will the advancement in recycling technology result in a shortage or surplus of paper made from recycled material at the previous price? Will the price of paper made from recycled material rise or fall? -surplus, rise -shortage, rise -shortage, fall -surplus, fall 2. Suppose General Electric, one of the largest suppliers of light bulbs, decides to discontinue its production of light bulbs. a. Which of the following will occur in the market for light bulbs? -demand will increase -supply…Consider each of the scenarios before, and explain what the effect of the given changes would be on the market for the good in bold that was originally in equilibrium. State which curve(s) shift (supply, demand, both, neither), and whether price and quantity are higher or lower after the change, or if this is not possible to determine. (a) An increase in the cost of dorm rooms on the market for apartments in the U-district? (b) The government increases the consumption tax rate for consumersp by 5% on the market for Rolex watches? (c) The increase in price of milk on cakes? Note: The solution should not be hand written.How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitive market; that is, do price and quantity rise, fall, or remain unchanged, or are the answers indeterminate because they depend on the magnitudes of the shifts? Use supply and demand diagrams to verify your answers.a. Supply decreases and demand is constant.b. Demand decreases and supply is constant.c. Supply increases and demand is constant.d. Demand increases and supply increases.e. Demand increases and supply is constant.f. Supply increases and demand decreases.g. Demand increases and supply decreases.h. Demand decreases and supply decreases.