Question
Are toll roads highly demanded or supplied in the U.S? Based on the following graphs: Graph A When one or more of the determinants of
- Are toll roads highly demanded or supplied in the U.S?
Based on the following graphs:
Graph A
When one or more of the determinants of demand change such that the demand for a good increases, that shows that consumers are willing to pay more for all possible quantities of the good. The upward shift in the demand curve causes an increase in price. Suppliers respond to the higher market price by bringing a greater quantity supplied to market - recall the Law of Supply.
Graph B
When one or more of the determinants of demand change such that the demand for that good decreases. The demand curve reflects this by shifting downward, showing the consumers are willing to pay less for all possible quantities of the good. This causes a decrease in price. Suppliers respond to the price change by bringing a lesser quantity supplied to market - recall the Law of Supply.
Graph C
When one or more of the determinants of supply change such that the supply for that good increases, the supply curve shifts outward showing that suppliers can bring more product to market at lower prices for all possible quantities. This causes a decrease in price. Demanders will respond to the price change with a greater quantity demanded - recall the Law of Demand.
Graph D
When one or more of the determinants of supply change such that the supply for that good decreases, the supply curve shifts inward showing the suppliers can bring fewer products to market at higher prices for all possible quantities. This causes an increase in price, and demanders are willing to buy a lesser quantity demanded - recall the Law of Demand.
- If tolls roads are highly demanded explain if the upward/downward shift in the demand curve causing an increase or decrease in prices.
- Or if tolls roads are highly supplied explain if the supply curve shifts outward/inward showing that suppliers can bring more/less product to market at lower/higher prices for all possible quantities.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started