Purchase Solution

# Supply and demand questions

Not what you're looking for?

1.
Can you illustrate by using supply and demand graphs what happens to the equilibrium price and quantity in each of the following situations. Please dont forget to label the graphs.
a. A rise in the price of tea on the market for coffee.
b.Expectations of higher prices on the market for housing.
c.A decline in the price of gas on the market for small cars.

2.
If we suppose that the market price for cigarettes is \$2.00. A tax of 20 cents per package is imposed.The consumer pays 15 cents of the tax and the producer pays 5 cents of the tax Could you illustarte this with a supply/demand graph?

3.
If the current market rent for a one bedroom apartment in Vancouver is \$500.00. An increase in demand will increase market rents to \$600.00. The provincial goverment intervenes to control rents at \$ 500.00. Can you illustarte this situation with a supply/demand graph.

Thank you!

##### Solution Summary

Supply and demand questions are answered.

##### Solution Preview

1. Can you illustrate by using supply and demand graphs what happens to the equilibrium price and quantity in each of the following situations. Please dont forget to label the graphs.
a. A rise in the price of tea on the market for coffee.
In this case, tea is a substitute for coffee so if the price of tea increases, some people will switch from tea to coffee, so more people will buy coffee. This will shift coffee demand out.

b.Expectations of higher prices on the market for housing.
I'm not sure ...

##### Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

##### Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

##### Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

##### 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.