Consider the estimated demand function for coffee Q = 8.5 p + 0.01Y, where Q is the quantity of coffee in millions of pounds per year, p is the price of coffee in dollars per pound, and Y is the average annual household income in high-income countries in dollars. Use algebra (or calculus) to show how the demand curve shifts as per capita income, Y, increases by $1,900 a year. Illustrate this shift in a diagram. If per capita income, Y, increases by $1,900 a year, then the quantity of coffee demanded changes by million pounds per year. (Enter your response rounded to one decimal place.)
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- Suppose you observed that the consumption of organges increased sharply last year, however thet total consumer expenditure on oranges did not change. Did a supply shift, demand shift or both cause this? explain using graphsNext, graphically illustrate the supply curve and demand curve for eggs, being certain that you fully label the graph; Then, briefly distinguish the difference between a movement along a curve and a shift of the curve. In doing so, be certain to list in your answer the factors shifting the demand curve as well as the factors shifting the supply curve; Next, graphically illustrate simultaneous shifts of the demand and supply curves for eggs, where there is a small rightward shift of the supply curve and a larger leftward shift of the demand curve, being certain that you fully label the graph. In doing so, be certain your answer includes an explanation of what happens to the equilibrium price and equilibrium quantity of eggs as a result of the shifts and what could have caused the supply curve to shift rightward and what could have caused the demand curve to shift leftward;Assume that the incomes of U.S. consumers increase. Will that impact the demand for automobiles? If so...how??? Construct a diagram and show me how the diagram will change once you factor into the diagram the given assumption.
- Question 1 Suppose Ms. Zeenia demands 150 units of ice cream at price 50, if the price tends to increase to 60 she reduced her demand by 30 units while a further increase in the price by 10 rupees led to the reduction in the quantity demanded to 90 units ceteris paribus. Given the information above drive the demand function. Now suppose the price of milk has increased, illustrates graphically if there would be any change in the demand function elucidated in part a. Also, explain why or why not? Question 2 Keeping the present rate of inflation (increase in the general price level) in mind, consumers living in Karachi are anticipating that the price of tomatoes will go up just like it did last year in November. In your opinion explain if there would be any impact on…6. An econometrician uses a model to estimate demand for wood-burning stoves (heaters) in Sweden. The following highlights the model: / Qws=f(Pws, Pw,Peh, Y) Where Qws is the quantity demanded of woodstoves, Pws is the price of wood stoves, Pw is the price of wood per bundle, Peh is the price of an electric heater and Y is the income of consumers. (a) Consider that the market for wood stoves in Sweden is currently at equilibrium. Draw neat diagrams for each case clearly explaining what would happen to the equilibrium price and quantity of woodstoves if: (i) (ii) (ii) Peh rises Pws falls Pw risesThe diagram to the right illustrates a hypothetical demand curve representing the relationship between price (in dollars per unit) and quantity (in 1,000s of units per unit of time). The area of the triangle shown on the diagram is $ (Enter your response as an integer.) C Price (dollars per unit) 100- 90- 80- 70- 60- 50- 40- 30- 20- 10- 0- 65 31 0 :25 :59 T 10 20 30 40 50 60 70 80 Quantity (1,000s of units per unit of time) 90 100 o U
- Suppose the demand and supply curves for rice in Japan are given by the following equations: QD = 120 - 30P QS = 40 + 10P Where QD = million tons of rice the Japanese would like to buy each year; QS = million tons of rice Japanese farmers would like to sell each year; and P = price per ton of rice (in hundreds). Fill in the following table: Use the information in the table to find the equilibrium price and quantity. Graph the demand and supply curves and identify the equilibrium price and quantity.The annual demand for imported oranges is given by the following equation:QD = 600,000 − 30,000Pwhere P is the price per kilogram and QD is quantity of kilograms demanded per year.The supply of imported oranges is given by the equation:QS = 20,000P Calculate the following: ii. the amount of revenues collectedAssume the demand curve for Pepsi passes through the following two points. Price per bottle of Pepsi $2.25 $1.75 Number of bottles of Pepsi sold 100,000 275,000 When plotting the demand curve (with price in dollars on the y-axis and quantity in bottles on the x-axis), when the y-value is $2.25, the x-value is the y-value is $1.75, the x-value is bottles. (Enter your responses as whole numbers.) bottles, and when
- The following graph shows the market for hamburgers in Detroit, where there are over 1,000 burger joints at any given moment. Suppose an innovation in meat processing technology makes it possible to produce more hamburgers at a lower cost than ever before. Show the efect of this change on the market for hamburgers by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. Supply Demand Supply Demand QUANTITY (Hamburgers) PRICE (Dolars per hamburger)Apple, the consumer electronics giant, on Tuesday rolled out new versions of its popular iPod music player. CEO Steve Jobs also unveiled cheaper models of its Touch music player, a touchscreen-only device. An 8-gigabyte version now costs $229, down from $299. A 32-gigabyte model costs $399, down from $499. Suppose when the price of an iPod decreases by 20 percent, the number of songs downloaded on iTunes increases by 30 percent. Based on this information iTunes are A. a normal good. B. an inferior good. C. substitutes for iPods. D. complements to iPods.Assume that the equilibrium price is at $3 and equilibrium quantity is at 40 units of a product. Then, imagine that suddenly any of determinants of demand, other than the price of the product, caused demand to increase while, at the same time, one of determinants of supply, other than the price of the product, caused supply to decrease. TASK: First, draw the demand and supply graph to show the original equilibrium price at $3 and equilibrium quantity at 40 units. Second pick ONE specific DETERMINANT of DEMAND and ONE specific DETERMINANT of SUPPLY Third, show in the graph what it looked like if demand increased and supply decreased (select where you think that the new price and quantity would change to), what the new equilibrium price and equilibrium quantity would be, after both changes in demand and supply occurred. Fourth, in a couple of words, write down what would be YOUR new equilibrium price and equilibrium quantity. [That is, tell us that the original equilibrium price…