Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with these 9 microeconomics questions: Question 5. Fundamentals of Supply and Demand [Ch.4] (1 mark) Use the following information to answer the

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

I need help with these 9 microeconomics questions:

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Question 5. Fundamentals of Supply and Demand [Ch.4] (1 mark) Use the following information to answer the next questions. Assume there is a downward sloping demand curve and an upward sloping supply curve for Honey Nut Cheerios. In the following scenarios, describe whether there will be a shift in demand, a shift in supply, a movement along the demand curve, or a movement along the supply curve. Note the direction of the shift if there is one (e.g., demand shifts to the left or demand shifts to the right), and nally, identify the effect of the event on the equilibrium quantity and equilibrium price in the market. Question 1 (0.1 points) a. The weather becomes very cold, and consumers begin to eat more oatmeal and less cereal. Demand for Honey Nut Cheerios shifts to the _______ , and this shift results in the equilibrium price _______ and the equilibrium quantity ________ . 0 right; increasing; increasing 0 right; increasing; decreasing 0 right; decreasing; increasing 0 right; decreasing; decreasing 0 left; increasing; increasing O left; increasing; decreasing O left; decreasing; increasing O left; decreasing; decreasing Question 2 (0.1 points) b. Rice Krispies, a substitute for Honey Nut Cheerios, now costs more. Demand for Honey Nut Cheerios shifts to the _______ , and this shift results in the equilibrium price _______ and the equilibrium quantity ________ . 0 right; increasing; increasing 0 right; increasing; decreasing 0 right; decreasing; increasing 0 right; decreasing; decreasing 0 left; increasing; increasing 0 left; increasing; decreasing 0 left; decreasing; increasing O left; decreasing; decreasing Question 3 (0.1 points) c. Milled wheat, the number one ingredient in Honey Nut Cheerios, now costs more. Supply for Honey Nut Cheerios shifts to the _______ , and this shift results in the equilibrium price _______ and the equilibrium quantity ________ . 0 right; increasing; increasing 0 right; increasing; decreasing 0 right; decreasing; increasing 0 right; decreasing; decreasing 0 left; increasing; increasing 0 left; increasing; decreasing O left; decreasing; increasing O left; decreasing; decreasing d. Suppose sugar consumption is found to be directly linked to pancreatic cancer by a research institution, and sugar is an ingredient in Honey Nut Cheerios. Assume that this change does not alter producers' decisions about producing Honey Nut Cheerios nor their input costs. Demand for Honey Nut Cheerios shifts to the and this shift results in the equilibrium price and the equilibrium quantity right; increasing; increasing O right; increasing; decreasing right; decreasing; increasing right; decreasing; decreasing O left; increasing; increasing O left; increasing; decreasing O left; decreasing; increasing left; decreasing; decreasingQuestion 5 (0.1 points) e. Honey Nut Cheerios become more expensive, as a price floor is implemented in this market.e. An effective price floor will ____ the price of Honey Nut Cheerios above the equilibrium price: at the imposed price floor price the quantity demanded will be than it was initially while the quantity supplied will be _____ than it was initially. increase; higher; higher increase; lower; higher O increase; higher; lower increase; lower; lower O decrease; higher; higher O decrease; lower; higher O decrease; higher; lower O decrease; lower; lowerQuestion 6 (0.1 points) f. Cardboard boxes become scarce, which are used in packaging Honey Nut Cheerios. Supply for Honey Nut Cheerios shifts to the _______ , and this shift results in the equilibrium price _______ and the equilibrium quantity ________ . 0 right; increasing; increasing 0 right; increasing; decreasing 0 right; decreasing; increasing 0 right; decreasing; decreasing 0 left; increasing; increasing 0 left; increasing; decreasing 0 left; decreasing; increasing 0 left; decreasing; decreasing Question 7 (0.2 points) g. Cows throughout the United States contract a rare disease carried by mosquitoes. This makes all domestic milk unsafe to drink, and milk is considered a complement to Honey Nut Cheerios. Demand for Honey Nut Cheerios shifts to the _______ , and this shift results in the equilibrium price _______ and the equilibrium quantity ________ . 0 right; increasing; increasing O right; increasing; decreasing O right; decreasing; increasing 0 right; decreasing; decreasing O left; increasing; increasing O left; increasing; decreasing 0 left; decreasing; increasing 0 left; decreasing; decreasing Question 8 (0.2 points) h. There is a huge increase of the number of immigrants this year and each immigrant wants to consume Honey Nut Cheerios regularly. At the same time, all the workers who produce Honey Nut Cheerios are on strike and win the negotiation; as a result of which, these workers' wage increased. The equilibrium price will _____ and the equilibrium quantity will ______ . 0 increase; increase 0 increase; decrease 0 decrease; increase O decrease; decrease 0 go up or down (undetermined); increase O go up or down (undetermined); decrease 0 increase; go up or down (undetermined) 0 decrease; go up or down (undetermined) Question 9 (0.2 points) i. The production cost of Honey Nut Cheerios reduces. At the same time, the price of Rice Krispies, a substitute for Honey Nut Cheerios, increases. The equilibrium price will _____ and the equilibrium quantity will ______ . 0 increase; increase 0 increase; decrease 0 decrease; increase 0 decrease; decrease O go up or down (undetermined); increase O go up or down (undetermined); decrease 0 increase; go up or down (undetermined) 0 decrease; go up or down (undetermined)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

Students also viewed these Economics questions

Question

Excel caculation on cascade mental health clinic

Answered: 1 week ago