the effect on the equilibrium price and quantity of new hybrid automobiles
Not what you're looking for?
3. Demonstrate, using supply and demand analysis, the effect on the equilibrium price and quantity of new hybrid automobiles when the following occurs. Using graphs similar to the notes in Week One, describe the change in the equilibrium price and quantity, and explain your answer. Is the equilibrium price higher or lower, or is the change indeterminate? Is the equilibrium quantity higher or lower, or is the change indeterminate?
a. Incomes increase
b. Interest rates decrease
c. The price of batteries used in the production of these vehicles decreases
d. price of gasoline decreases
4. Determine if the demand for the following products is price elastic or price inelastic, and explain your answer.
a. Box of cereal sold in a grocery store
b. Gasoline as a commodity
c. Gasoline sold at a local gasoline station
d. Fast food sold at a restaurant
e. Hotel rooms for people planning a vacation
f. Hotel rooms for people on business to meet an important client
g. Clothes sold in a discount retailer
h. Newspapers
i. Fresh peas
j. Major League Baseball tickets
Purchase this Solution
Solution Summary
The effect on the equilibrium price and quantity of new hybrid automobiles is depicted.
Purchase this Solution
Free BrainMass Quizzes
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.