6 Each of the following events would tend to increase or decrease the demand for or the supply of electronic games and, as a result, will increase or decrease the price of these games In the first blank indicate the effect on demand or supply (D1, DI, ST, SJ) in the second blank, indicate the effect on price (P1, PI) in the third blank, indicate the effect on quantity (Q1, Q1) Assume that the market for electronic games is a competitive one (Hint First determine whether the supply or demand curve will shift Then draw a supply and demand model Indicate the initial equilibrium Then shift the appropriate curve in the appropriate direction, find the new equilibrium, determine whether the price has increased or decreased, and determine whether the quantity has increased or decreased ) a It becomes known by consumers that there is going to be a major sale on these games one month from now b The workers in the electronic games industry receive a $3 an hour wage increase Demand c It is announced by a respected research institute that children who play electronic games also improve their grades in school D seller input S seller d Because of an increase in productivity, the amount of labor necessary to produce a game decreases Demand e The consumers who play these games believe that a shortage of the games is developing in the economy Supply f The federal government imposes a $5 tax per game on the manufacturers of the electronic games 1 Assume there are two countries Argentina and Brazil Assume also there are two goods coffee and wine Argentina has 10,000 hours of labor month and can produce 1 lb coffee in 2 hours and can produce 1 bottle wine in 4 hours Brazil has 10,000 hours of labor month and can produce 1 lb coffee in 1 hour and can produce 1 bottle wine in 5 hours a Which country has an absolute advantage in the production of coffee b Which country has a comparative advantage in the production of wine i What is Argentina's opportunity cost of wine ii What is Brazil's opportunity cost of wine

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6  Each of the following events would tend to increase or decrease the demand for or the supply of electronic games and, as a result, will increase or decrease the price of these games  In the first blank indicate the effect on demand or supply (D1, DI, ST, SJ)  in the second blank, indicate the effect on price (P1, PI)  in the third blank, indicate the effect on quantity (Q1, Q1)  Assume that the market for electronic games is a competitive one  (Hint  First determine whether the supply or demand curve will shift  Then draw a supply and demand model  Indicate the initial equilibrium  Then shift the appropriate curve in the appropriate direction, find the new equilibrium, determine whether the price has increased or decreased, and determine whether the quantity has increased or decreased ) a  It becomes known by consumers that there is going to be a major sale on these games one month from now  b  The workers in the electronic games industry receive a $3 an hour wage increase  Demand c  It is announced by a respected research institute that children who play electronic games also improve their grades in school  D seller input S seller d  Because of an increase in productivity, the amount of labor necessary to produce a game decreases  Demand e  The consumers who play these games believe that a shortage of the games is developing in the economy  Supply f  The federal government imposes a $5 tax per game on the manufacturers of the electronic games 1  Assume there are two countries  Argentina and Brazil  Assume also there are two goods  coffee and wine  Argentina has 10,000 hours of labor month and can produce 1 lb  coffee in 2 hours and can produce 1 bottle wine in 4 hours  Brazil has 10,000 hours of labor month and can produce 1 lb  coffee in 1 hour and can produce 1 bottle wine in 5 hours  a  Which country has an absolute advantage in the production of coffee  b  Which country has a comparative advantage in the production of wine  i  What is Argentina's opportunity cost of wine  ii  What is Brazil's opportunity cost of wine

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6. Each of the following events would tend to increase or decrease the demand for or the supply of electronic games and, as a result,

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