Chapter 3 Assignment 0 Saved 5 What effect will each of the following have on the supply of auto tires? a. A technological advance in the methods of producing tires (Click to sale V b. A decline in the number of rms in the tire industry (Clickto sole V c. An increase in the price of rubber used in the production of tires {C ink to sale V d. The expectation that the equilibrium price of auto tires will be lower in the future than currently {Click to sale V e. A decline in the price of the large tires used for semi-trucks and earth-hauling rigs (with no change in the price of auto tires] [Click to sale V f. The levying of a per-unit tax on each auto tire sold (Clickto sole V g. The granting of a SO-cent-per-unit subsidy for each auto tire produced (Click to sale V Chapter 3 Assignment 0 Saved 6 What are the determinants of demand? Instructions: You may select more than one answer. Click the bout with a check mark for correct answers and click to empty the box for the wrong answers. a Income a Price of related goods a A good's own price Technology a Tastes and preferences a Factor prices a Number of consumers Indicate whether a change in the value of each of the following determinants of demand leads to a movement along the demand curve or a shift in the demand curve. i. Change in market price: (Click to solo V ii. Change in income: (Clickto sale V iii. Change in consumer expectations: {Click in sale V Iv. Change in the price of a related good: {Click to sale V v. Change in technology: {Click to sale V vi. Change in factor prices: (Click to sale V PFlCE Quantity A change from point A to point B = {Click to sale V A change from point A to point C = (Click to solo V each firm's shares demanded equals the quantity supplied. 50, if this equality always occurs, why do the prices of stock shares ever change? 7 For each stock in the stock market, the number of shares sold daily equals the number of shares purchased. That is, the quantity of 0 Prices change in reaction to a mismatch between Qd and Os. 0 Prices change due to the whims of those selling shares. 0 Prices seldom change. 0 Prices are set at a different level each day by Wall Street traders