By drawing a graph for each case and showing how supply and demand change, indicate what happens to the equilibrium price and quantity after the change compared to the initial scenario? In all scenarios, assume that you start with equilibrium.
a) You sell short sleeve T-shirts in Houston and winter is over, summer is approaching. What happens to the price and quantity of T-shirts?
b) You sell laptops and Samsung just released its newest tablet that just does pretty much everything your laptops do. What happens to the price and quantity of laptops?
c) You sell gas dryers with steam function. As the overall economy grows, per person income is expected to increase by 6% next year. What happens to the price and quantity of dryers?
d) You sell Xbox 4 DVD games on a website. It is reported that the price of the Xbox will be 20% cheaper next year. At the same time the input material you purchase to produce DVDs will be more expensive. What happens to the price and quantity of Xbox DVDs?
e) You sell filtered orange juice. The cost of filters will be cheaper and at the same time a hurricane hit apple fields that will push apple and apple juice prices up. What happens to the price and quantity of orange juice?
By drawing a graph for each case and showing how supply and demand change, indicate what happens to the equilibrium price and quantity after the change compared to the initial scenario? In all scenarios, assume that you start with equilibrium.
a) You sell short sleeve T-shirts in Houston and winter is over, summer is approaching. What happens to the price and quantity of T-shirts?
b) You sell laptops and Samsung just released its newest tablet that just does pretty much everything your laptops do. What happens to the price and quantity of laptops?
c) You sell gas dryers with steam function. As the overall economy grows, per person income is expected to increase by 6% next year. What happens to the price and quantity of dryers?
d) You sell Xbox 4 DVD games on a website. It is reported that the price of the Xbox will be 20% cheaper next year. At the same time the input material you purchase to produce DVDs will be more expensive. What happens to the price and quantity of Xbox DVDs?
e) You sell filtered orange juice. The cost of filters will be cheaper and at the same time a hurricane hit apple fields that will push apple and apple juice prices up. What happens to the price and quantity of orange juice?
