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Demonstrate, using supply and demand analysis, the impact on the equilibrium price and quantity of new Hybrid automobiles when the following occurs

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Demonstrate, using supply and demand analysis, the impact on the equilibrium price and quantity of new Hybrid automobiles when the following occurs. Using graphs, describe the change in the equilibrium price and quantity, and explain your answer. Is the equilibrium price higher, 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.

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. Hotel rooms for people on business to meet an important client

Describe the relationship between technology, productivity, and costs. How has your firm used technology? What was the impact on productivity, costs, and profits?

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Please find my response attached.

Demonstrate, using supply and demand analysis, the impact on the equilibrium price and quantity of new Hybrid automobiles when the following occurs. Using graphs, describe the change in the equilibrium price and quantity, and explain your answer. Is the equilibrium price higher, 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.

So, what you have described in parts A-C is supply/demand shift factors. You'll need to think critically to determine the direction of the shift. These three questions should illustrate that. The relevant factors are:
Determinants of Demand:
- change in consumer tastes
- change in the number of buyers
- change in consumer incomes
- change in the prices of complementary and substitute goods
- change in consumer expectations

Determinants of Supply:
- change in input prices
- change in technology
- change in taxes and subsidies
- change in the prices of other goods
- change in ...

Solution Summary

The solution discusses the impact on the equilibrium price and quantity of new hybrid automobiles.

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Similar Posting

2 economics problems with multiple parts

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

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