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July 4, 2015

Homework Help: macro economics

Posted by Destinie on Thursday, July 28, 2011 at 9:52pm.

For each event, illustrate the impact on the relevant market and determine what will happen to the equilibrium price and quantity in that market. (40 points 10 points per line item)
Event
Market for:
Show which curve shifts
Equilibrium price rise or fall?
Equilibrium quantity increase or decrease?

Economic growth is expected to improve in the next two quarters.
Aluminum




Plastics production capacity has increased.
Plastics




The Japanese government has decided to subsidize its domestic automobile producers with stimulus money.
Automobiles




Manufacturers who use plastic as an input have access to cheaper plastic.
Manufactured goods that use plastic as an input

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