Question

label each of the following scenarios with the set of symbols that best indicates the price...

label each of the following scenarios with the set of symbols that best indicates the price change and quantity change that occur in the scenario. in some scenarios it may not be possible from the information given to determine the direction of a particular price change or a particular quantity change. We will symbolize those cases as respectively p and Q . the four possible combinations of price and quantity changes are Lo3.5

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Answer #1

Here are the following scenarios of Demand and Supply changes that affects price and quantity.

If   Then
Demand Increases Price and Quantity increases
Demand Decreases Price and Quantity decreases
Supply Increases    Price decreases and Quantity increases
Supply Decreases Price increases and Quantity decreases
Increase in Demand & Decrease in Supply          Price increases & Quantity is undetermined
Decrease in Demand & Increase in Supply          Price decreases & Quantity is undetermined
Demand & Supply Increases Price is undetermined & Quantity increases
Demand & Supply Decreases    Price is undetermined & Quantity decreases

1) demand for lemonade and the supply of lemonade increase.
P? Q
Price is undetermined and quantity increases.

2) demand for ice cream and the supply of ice cream decrease.
P? Q
Price is undetermined and quantity decreases

3) demand for sightseeing flights increases but the supply of pilots willing to provide these dangerous flights decreases.
P Q?
Price increases and quantity is undetermined

4) demand for the electricity falls but at the same time, the amount of electricity supplied increases
P Q?
Price decreases and quantity is undetermined

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