Draw the supply-and-demand diagrams for market X in each of the following scenarios (separate graph for each scenario.) Then use your diagrams to illustrate the impact of the following events, ceteris paribus. In each case, determine what happens to price and quantity in the market for X. (You must properly label ALL initial & subsequent: axes, curves, prices, quantities, and equilibriums.) a) X and Y are substitutes, and the price of good Y increases. b) X and Y are a typically used in conjunction, and there is a shift in tastes away from another good Z and toward Y. c) X is an inferior good, and incomes in the community decreases. d) There is a technological advance in the production of good X. e) Y is an input used to produce good X, and dire international political events disrupt availability of Y.

Draw the supply-and-demand diagrams for market X in each of the following scenarios (separate graph for each scenario.) Then use your diagrams to illustrate the impact of the following events, ceteris paribus. In each case, determine what happens to price and quantity in the market for X. (You must properly label ALL initial & subsequent: axes, curves, prices, quantities, and equilibriums.) a) X and Y are substitutes, and the price of good Y increases. b) X and Y are a typically used in conjunction, and there is a shift in tastes away from another good Z and toward Y. c) X is an inferior good, and incomes in the community decreases. d) There is a technological advance in the production of good X. e) Y is an input used to produce good X, and dire international political events disrupt availability of Y.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 2TY

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