Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Step 1: Draw a supply-and-demand diagram. Price is on the vertical axis, quantity is on the horizontal axis, demand is downward-sloping, supply is upward-sloping, and

Step 1: Draw a supply-and-demand diagram. Price is on the vertical axis, quantity is on the horizontal axis, demand is downward-sloping, supply is upward-sloping, and be sure to label equilibrium price and equilibrium quantity.

Step 2. Change colors! If you have a highlighter or colored pencil (crayon, sharpie, whatever).

Step 3. Show the change in demand or supply (only one curve will shift in each scenario). State if the curve decreases or increases.

Step 4: Show the new equilibrium price and equilibrium quantity.

Step 5: Repeat Steps 1-4 for each scenario. You will have a total of 4 graphs.

  • Scenario A: A hurricane destroys refineries that produce gasoline.
  • Scenario B: Consumers purchase electric vehicles that do not need gasoline.
  • Scenario C: Technological innovation occurs that reduces the cost of producing gasoline.
  • Scenario D: Road trips become the one and only vacation option and many families opt for long-distance road trips.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

How Social Forces Impact The Economy

Authors: Steven Pressman

1st Edition

1000062899, 9781000062892

More Books

Students also viewed these Economics questions

Question

=+c) Do you find evidence of a seasonal effect? Explain.

Answered: 1 week ago

Question

10. What is meant by a feed rate?

Answered: 1 week ago