economics

posted by .

For each event, illustrate the impact on the relevant United States market and determine what will happen to the equilibrium price and quantity in that market. I have 2 demand and supply graphs, the first one is for 3 of them and the second is for the last one. I just need someone to tell me if
my answers are right, my answers have a star beside them.

a)Increased popularity among high protein diets.

***Demand curve shifts to the right:Increase in equilibrium price and quantity.

b)Ban on Canadian imports of beef(We are in a US market.

***Supply curve shifts to the left:Increase in Price and decrease in quantity.

c)Persistent drought increases the price of grain feed to cattle.

***Supply curve shifts to the left: Increase in Price and decrease in quantity.

d)Incomes of ranchers increase.(Use Second Graph)

***Demand curve shifts to the right:Increase in Price and quantity.

Are these answers correct??

img158.imageshack.us/img158/1218/ds1pl8.jpg
img118.imageshack.us/img118/2746/ds2yt1.jpg


Think about d) a bit more. Why does the demand curve shift? Ranchers income rises so demand for beef by ranchers rises, ergo overall demand shifts right. So your answer is fine.

But, is there a supply response? I suggest that increasing income of ranchers will cause other ag folks to re-think their product mix. That is, more people will become attracted to ranching, shifting the supply of beef outward.


Sorry, forgot to say your answers to a,b, and c are correct.

  • economics -

    . 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







    2. Use the information below of Labor to Total Product (TP) to answer questions A, B, and C. (60 points)



    Labor
    Total product

    (pairs of shoes)

    0
    0

    1
    20

    2
    50

    3
    75

    4
    80

    5
    75




    A. Given the information above, what is the marginal product of the third unit of labor?





    B. Given the information above, at what point do diminishing marginal returns set in?





    C. Given the information above, at what point do negative marginal returns set in?

  • economics -

    A. 25

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. plz help me

    For each event, illustrate the impact on the relevant United States market and determine what will happen to the equilibrium price and quantity in that market. I have 2 demand and supply graphs, the first one is for 3 of them and the …
  2. Economics

    Utilizing market demand and market supply curves for spaghetti, help me illustrate the effect on equilibrium price and quantity of spaghetti for: Increased worldwide demand for rice leads to an increase in the price of ride (which …
  3. Economics

    Utilizing market demand and market supply curves for spaghetti, help me illustrate the effect on equilibrium price and quantity of spaghetti for: Increased worldwide demand for rice leads to an increase in the price of ride (which …
  4. Microecon help

    How would the following affect the equilibrium price and quantity in the beef market?
  5. economics

    Market research has revealed the following information about the market for chocolate bars. The demand schedule can be represented by the equation QD=1,600-300P, where QD is the quantity demanded and P is the price. The supply schedule …
  6. microeconomics

    . 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 …
  7. micro economics

    For each event, illustrate the impact on the relevant market and determine what will happen to the equilibrium price and quantity in that market. Event Market for: Show which curve shifts Equilibrium price rise or fall?
  8. macro economics

    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 …
  9. economy

    consider a perfectly competitive market in which all firms have the same costs. choose the statement that is incorrect a)the market demand is elastic at the market price b)each firm takes the market price as given and produces its …
  10. Math

    The supply and demand for a business manufacturing toy cars are given by these two equations, where y is the price in dollars per item and x is the number of toy cars sold in thousands. Supply: y = x^2 − x + 0.5 Demand: y = x^2 …

More Similar Questions