Question
Suppose the market for Nissan's electric cars is currently in equilibrium. Suddenly, Tesla, a competitor, announces that they will decrease the price of all their
Suppose the market for Nissan's electric cars is currently in equilibrium. Suddenly, Tesla, a competitor, announces that they will decrease the price of all their electric cars by 5%.
A. (2 points) What happens to the demand for Nissan's electric cars?
B. (2 points) What happens to the supply of Nissan's electric cars?
C. (2 points) What happens to the price of Nissan's electric cars in the new equilibrium? (hint, it might help you to draw a graph, but it is not required)
D. (2 points) What happens to the quantity of Nissan's electric cars in the new equilibrium?
Suppose the market for coffee in Tempe is currently in equilibrium. Suddenly, a drought in South America wipes out half of this year's coffee crop.
A. (2 points) What happens to the demand for coffee?
B. (2 points) What happens to the supply of coffee?
C. (2 points) What happens to the price of coffee in the new equilibrium? (hint, it might help you to draw a graph, but it is not required)
D. (2 points) What happens to the quantity of coffee in the new equilibrium?
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
