Question: Draw the diagram of market equilibrium of houses and draw new readjusted equilibrium after the announcement of Government's new on Tax profit

Question: Show in a diagram the effect on the demand curve, the supply curve, the equilibrium price, and the equilibrium quantity of each of the following events.

a. The market for newspapers in your town

Case 1: The salaries of journalists go up.

Case 2: There is a big news event in your town, which is reported in the newspapers.

b. The market for St. Louis Rams cotton T-shirts

Case 1: The Rams win the Super Bowl.

Case 2: The price of cotton increases.

c. The market for bagels

Case 1: People realize how fattening bagels are.

Case 2: People have less time to make themselves a cooked breakfast.

a. The market for the Krugman and Wells economics textbook

Case 1: Your professor makes it required reading for all of his or her students.

Case 2: Printing costs for textbooks are lowered by the use of synthetic paper.

Question: Suppose that the supply schedule of Maine lobsters is as follows:

Suppose that Maine lobsters can be sold only in the United States. The U.S. demand schedule for Maine lobsters is as follows:

a. Draw the demand curve and the supply curve for Maine lobsters. What are the equilibrium price and quantity of lobsters?

Now suppose that Maine lobsters can be sold in France. The French demand schedule for Maine lobsters is as follows:

b. What is the demand schedule for Maine lobsters now that French consumers can also buy them? Draw a supply and demand diagram that illustrates the new equilibrium price and quantity of lobsters. What will happen to the price at which fishermen can sell lobster? What will happen to the price paid by U.S. consumers? What will happen to the quantity consumed by U.S. consumers?

Question:

Price

Quantity

7

0

6

2

5

4

4

6

3

8

2

10

1

12

0

14

'

Calculate Total Revenue, Percentage Change in Price, Percentage Change in Quantity, Elasticity. Draw on a graph and explain