Question

Explain whether you agree with each statement below. Explain how each event affects the equilibrium in...

Explain whether you agree with each statement below. Explain how each event affects the equilibrium in the market for bicycles.

a.   The government of a city finalizes the construction of bike lanes. At the same time, the price of bicycle helmets (a complement to bicycles) decreases. Both events lead to an increase in the equilibrium price and a decrease in the equilibrium quantity of bicycles.

b.   The price of aluminum used to make bicycles increases and the average consumer income increases leading to an increase in the equilibrium quantity and price of bicycles.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Two events occur simultaneously in the market for California wine: Event 1: The price of glass...
Two events occur simultaneously in the market for California wine: Event 1: The price of glass wine bottles falls because strict government regulations on anti-shatter glass containers are abolished by Congress. Event 2: The price of cheese increases. Using demand and supply analysis predict what is likely to happen to the equilibrium price of California wine and the equilibrium quantity of California wine. a) Demand for California wine increases and supply of California wine increases, and the impact of these...
Evaluate the set of events below. Determine how the events will impact their respective markets. a.In...
Evaluate the set of events below. Determine how the events will impact their respective markets. a.In the market for dairy milk. Consumer preferences shift away from dairy milk toward alternatives.      The effect of the event will be a(n) (increase/decrease) in (demand/supply).      As a result, the equilibrium price will (increase/decrease) and the equilibrium quantity will (increase/decrease). b. In the market for name brand clothing. Incomes in the United States increase.      The effect of the event will be a(n)...
Explain how each of the following events affects the market equilibirium quantity and price of jeans....
Explain how each of the following events affects the market equilibirium quantity and price of jeans. Be sure to specify how these events affect the demand or supply curve, if at all. (An example of an answer would be the "supply curve moves down and to the right, increasing the equilbrium quantity and decreasing equilibrium price of jeans") (1) A new technology becomes available that cuts the time it takes to manufacture a pair of jeans by 50% (2) The...
Use the Supply and Demand Model to explain the changes in equilibrium price and equilibrium quantity...
Use the Supply and Demand Model to explain the changes in equilibrium price and equilibrium quantity in the market for Ford F150 Pickup Trucks. Make sure to include the following information in each part of your answers: 1. Which curve shifts 2. Which direction it moves 3. What is the impact on equilibrium prices and equilibriums quantities as a result of this shift Explain each of the following events separately and then explain what happens if they occur at the...
State whether you agree or disagree with the statement below. Explain you answer. "If the highest...
State whether you agree or disagree with the statement below. Explain you answer. "If the highest marginal income tax rate increases, yields of tax-exempt municipal bonds should increase relative to yields of taxable corporate bonds, all else equal." Hint: Would tax-exempt bonds become more or less attractive to investors in the highest tax brackets when these investors start getting taxed at higher rates? If a tax benefit of Investing in a tax-exempt security increases, would investors be willing to accept...
Explain how, if at all, each of the following events would affect equilibrium real GDP and...
Explain how, if at all, each of the following events would affect equilibrium real GDP and equilibrium price level. A reduction in the quantity of money in circulation A technological improvement in producing calculators and printers A hurricane of unprecedented strength has damaged oil rigs factories and ports all along the United States coast.
1. For each of the following events, determine whether the aggregate demand curve or the short-run...
1. For each of the following events, determine whether the aggregate demand curve or the short-run aggregate supply curve will shift. Show the shift on a graph and explain what happens to equilibrium price level and equilibrium GDP because of the shift. A.) A stock market boom makes people wealthier. B.) A recession overseas causes foreigners to buy fewer US goods. C.) Oil prices rise. D.) The government implements several new programs thereby increasing its spending. E.) A technological improvement...
Question: Explain whether the following statements are TRUE or FALSE. You should explain your answer in...
Question: Explain whether the following statements are TRUE or FALSE. You should explain your answer in each case and show on a graph. a)   (……………..) If wages adjust fully to price increases in the long run, fiscal policy will have no effect on output. b)   (...................) A decrease in government spending and an increase in costs lead to a decrease in the price level certainly. c)   (……………..) An earthquake destroyed a small economy. As a result, the government decided to...
Determine which of the supply curve shifters (Spent) would apply to each situation. Explain whether the...
Determine which of the supply curve shifters (Spent) would apply to each situation. Explain whether the event will increase or decrease the supply of movies. Tell whether the supply curves to the right or to the left. a. The cost to produce movies increases. b. The number of studios that make movies decreases. c. Movie theaters expect the market price of tickets to decrease next month.
1) For each question below, compare perfect competition vs monopoly with a constant marginal cost; a)Explain...
1) For each question below, compare perfect competition vs monopoly with a constant marginal cost; a)Explain and show how each firm determines its own demand curve and compare the shape or slope of their demand curve and marginal revenue curve. b) Explain show and contrast how each type of the firm determines the profit maximizing price and quantity and also compare the resulting market equilibrium price and quantity. c) Show and compare the markets producers’ surplus, consumer surplus and deadweight...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT