Illustrate the following with supply and demand curves:
A. With increased access to wireless technology and lighter weight , the demand for laptop computers has increased substantially. Laptops have also become easier and cheaper to produce as new technology has come online. Despite the shift of demand prices have fallen.
B. Cranberry production in Massachusetts totaled 1.8 million barrels in 2004, a 28 percent increase from the previous year's production. This year's crop yield averaged 127.9 barrels per acre, an increase of over 30 barrels per acre from the 2003 crop. But demand increased by even more than supply, actually pushing 2004 prices above 2003 prices.
C. During the high-tech boom late in the 1990s San Jose office space was in very high demand and rents were very high. With the national recession that began in March 2001, however, the market for office space in San Jose (Silicon Valley) was hit very hard, with rents per square foot falling. In 2005, the employment numbers from San Jose were rising slowly and rents began to rise again. Assume for simplicity that no new office space was built during the period.
D. The steel industry has been lobbying for high taxes on imported steel. Russia, Brazil, and Japan have been producing and selling steel on world markets at $22 per metric ton, well below what equilibrium would be in the United States with no imports. If no imported steel were permitted into the country, the equilibrium price would be $35 per metric ton. Show supply and demand curves for the United States assuming no imports; then show what the graph would look like if U.S. buyers could purchase all the steel they wanted from world markets at $22; show the quantity of imported steel. In 2002 , President George W. Bush imposed a 30 percent tariff on imported steel.© BrainMass Inc. brainmass.com October 24, 2018, 10:31 pm ad1c9bdddf
This posting depicts supply and demand curves.
1. Find a product (possibly a commodity) traded in the global market and examine how the price of the product has changed over the past 10 years. How have these price changes reflected the law of supply and demand? Be sure to discuss both movement along the supply/demand curve as well as shifts in the curves. (A graph in excel, as an attachment, would show understanding).
2. Suppose there are two services offered in the economy: dance clubs and college education. Both require the use of limited resources, but not all of the resources used in each one can be readily transferred to the other. What is the effect on the economyâ??s production possibility curve (reflecting these two services) in both the short and long run if it shifts resources from dance clubs to education?View Full Posting Details