Consider the market for snow shovels. Suppose the quantity of snow shovels demanded by consumers (Q^D) depends on the price of an snow shovel (P) and the percentage chance of snow (C) forecasted by the local news station. Similarly, the quantity of snow shovels supplied by producers (Q^S) depends on the price of an snow shovel (P) and the square-yard price of wood (W) used in the production of snow shovels.

The numerical formula for the quantity of snow shovels demanded and supplied is as follows:

Q^D=6P+0.2C

Q^S=4+P12W

Which of the following variables areendogenousin the supply and demand model?Check all that apply.

Chance of snow

Price of a snow shovel

Equilibrium quantity of snow shovels

Which of the following formulas correctly states the demand for snow shovels in functional form?

P=D(Q^D ,C)

C=D(P,Q^D)

Q^D=D(P,C)

Draw a graph, use the blue points (circle symbol) to draw the market demand curve if the weather forecast says the chance of snow is 50%. (Note: Do not convert the percentage to a decimal when plugging this value into the demand curve formula.) Then use the orange points (square symbol) to draw the market supply curve if the current cost of wood is $1 per square yard. Finally, use the black point (plus symbol) to indicate the equilibrium price and quantity in the market for snow shovels.

Suppose the chance of snow decreases to 30%.

Draw a graph, show the effects this has on the market for snow shovels by shifting the demand curve, the supply curve, or both.