Question

Draw a supply and demand diagram for the market for movie theatre tickets during COVID-19. Label...

  1. Draw a supply and demand diagram for the market for movie theatre tickets during COVID-19. Label each axis, the demand curve, the supply curve, the equilibrium price, and the equilibrium quantity. Then, show the impact of your answer to part (b) on the market by drawing a new supply and/or demand curve. Label the new equilibrium price and quantity.
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1


Ans. Due to CoVID -19, fearing the spread of the virus in movie theatres, there is decrease in demand for movie theatre tickets. This shifts the demand curve for these tickets to the left from D to D'. This will create a surplus of movie theatre tickets in the market decreasing the price level from P to P'. This decrease in price level leads to losses to movie theatre owners, so, many theatres shutdown. This decreases quantity supplied moving equilibrium to the equilibrium level Q' down from Q.

* Please don’t forget to hit the thumbs up button, if you find the answer helpful.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the market for movie theater tickets: The cost of leasing movies increases for theaters. Draw...
Consider the market for movie theater tickets: The cost of leasing movies increases for theaters. Draw the initial demand and supply graph and then draw the new supply or demand curve on the graph of the market for movie theatre tickets. Label the new curve, and the new market equilibrium price and quantity.
(a) Draw a Supply Curve and the Demand Curve for the Milk market. Label the supply...
(a) Draw a Supply Curve and the Demand Curve for the Milk market. Label the supply S1 and the demand D1. Label the vertical axis P for Price and label the horizontal axis Q for Quantity of Milk. Label on the vertical axis the equilibrium price as P1. Label on the horizontal axis the equilibrium quantity as Q1. Assume now that the price of Breakfast Cereals has increased by 200%. (b) Would the Supply Curve for Milk increase, decrease or...
Suppose that the market for milk is initially perfectly competitive. a) Draw a supply and demand...
Suppose that the market for milk is initially perfectly competitive. a) Draw a supply and demand diagram showing the equilibrium quantity of milk produced and the market price. Be sure to label all part of your diagram. b) On your diagram from Part (a), label the consumer and producer surplus. c) Suppose that the government permits an industry association to form which issues production quotas to each dairy farmer. If the sum of the quotas are less than competitive market...
Assume that the market for milk is initially perfectly competitive. 1. Draw a supply and demand...
Assume that the market for milk is initially perfectly competitive. 1. Draw a supply and demand diagram showing the equilibrium quantity of milk produced and the market price. Be sure to label all part of your diagram. 2. On your diagram from Part (a), label the consumer and producer surplus. 3. Suppose that the government permits an industry association to form which issues production quotas to each dairy farmer. If the sum of the quotas are less than competitive market...
Please draw a supply and demand diagram for the “Market for Pasta” and answer the following...
Please draw a supply and demand diagram for the “Market for Pasta” and answer the following questions (Label all axes and curves). a. Assume pasta and red wine are Complements. Furthermore, suppose the price of red wine increases. Illustrate the effect of the price change on the Demand Curve for Pasta. b. Additionally, there is a (positive) technological improvement in pasta production. Illustrate the effect of the new technology on the Supply Curve for Pasta. c. How do the changes...
Utilize a market model to draw the demand and supply for loanable fund in equilibrium. Label...
Utilize a market model to draw the demand and supply for loanable fund in equilibrium. Label the demand curve D1 and the supply curve S1. Label the initial interest rate as r1 and quantity of loanable funds as Q1. Shift the correct curve to demonstrate what happens in this market when there is strong economic growth. Be sure to label the new equilibrium interest rate and quantity of loanable funds. Briefly describe what has happened in this market.
(i) Draw and label a supply and demand diagram with a short run supply curve. (ii)...
(i) Draw and label a supply and demand diagram with a short run supply curve. (ii) Shift out the demand curve and show the short run effect on output and price. (iii) Show the long run effect on price by drawing a second short run supply curve. Use this short run supply curve to trace out the position of the long run supply curve. Do (i), (ii) and (iii) for a. a constant cost industry and b. an increasing cost...
Draw a supply-and-demand diagram representing the market for sugar for each of the sub-questions below. Show...
Draw a supply-and-demand diagram representing the market for sugar for each of the sub-questions below. Show the effects of the scenario in each sub-question on the equilibrium price and quantity of sugar. Carefully label the diagram and show the shift of the curves clearly.   a.     The price of sugar cane falls during the Halloween season b.     The workers working in the sugar industry go on strike and at the same time the price of artificial sweeteners rises dramatically.
Draw a supply and demand diagram showing the market equilibrium price and quantity. Now draw a...
Draw a supply and demand diagram showing the market equilibrium price and quantity. Now draw a diagram showing how a perfectly competitive firm might make a loss at this market price. Identify the firm’s quantity supplied, average total cost, and total losses. Finally, use the market supply and demand diagram to show what would happen to bring this market to long run competitive equilibrium.
Consider the market for coffee. a.) Draw a supply and demand curve for the market for...
Consider the market for coffee. a.) Draw a supply and demand curve for the market for coffee. Label the equilibrium price and quantity. b.) What will happen to the original equilibrium price of coffee if the price of tea increases? Explain. Show the effect of this change in a new graph of the market. c.) What will happen to the original equilibrium price of coffee if new conservation laws in Brazil force some coffee plantations to close? Explain. Show the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT