ECO100Y1 Lecture Notes - Lecture 3: Shortage, Economic Equilibrium, List Price

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bluegrasshopper710

18 Jan 2018

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Other things equal, the higher is the price of a good, the higher is the quantity supplied. Ex. 3 a change in the supply of coffee [for a given price, a change in quantity supplied: weather [severe drought, technology [cost of harvesting beans falls] #2 technological innovations which reduces cost of harvesting coffee beans. Any other price: market forces will change: p=4 qd=3 qs=5. Qd

Related Questions

Question 1:-
If new manufacturers enter the computer industry, the [a] curve will [b] to the [c].
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Question 2:-
Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect Andy's demand for [a] to [b].
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Question 3:-

Various factors cause the demand curve to shift. These can include:

	A.	change in income
	B.	changes in the number of buyers
	C.	changes in future expectations
	D.	all of the above.

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Question 4:-

A drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied; conversely, especially good weather would shift the .

	A.	demand curve to the right
	B.	supply curve to the right
	C.	supply curve to the left
	D.	demand curve to the left

-Demand and Supply Balance

Table 1: Coffee Prices in Saudi Riyal per pound

Price in SAR	Quantity Demanded (in bags)	Quantity Supplied (in bags)
5	200,000	80,000
6	180,000	120,000
7	160,000	160.000
8	140,000	200,000

a.) Draw the supply and demand curve.

b.) What are the equilibrium price and equilibrium quantity?

c.) What is going to happen to the equilibrium price and equilibrium quantity if a draught is going to destroy the coffee harvest in Brazil, one of the largest coffee bean producers in the world? Just mention the direction of change, not any actual numbers.

d.) What is going to happen to the equilibrium price and equilibrium quantity if, in addition to the draught in Brazil, a global recession reduces the demand for coffee beans?

byzantiumantelope216

10) Suppose that a newer way to produce a good is discovered, which reduces production costs for the good. This will cause A) no change in the supply curve, only a change in price. B) a decrease in supply (a leftward shift of the supply curve). C) a movement up the supply curve. D) a movement down the supply curve E) an increase in supply (a rightward shift of the supply curve). The table below displays hypothetical demand and supply schedules for the market for overnight parcel deliveries in Canada. Price (S) 30 26 80 Quantity Demanded (millions) Year 1 Year 2 95 90 105 100 115 110 125 120 135 130 145 22 Quantity Supplied (millions) Year 1 Year 2 140 125 135 120 130 115 125 110 120 | 105 115 100 | 14 10 TABLE 3-3

ECO100Y1 Lecture Notes - Lecture 3: Shortage, Economic Equilibrium, List Price

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