section) For each of the following scenarios, determine if there is an increase
ID: 1144464 • Letter: S
Question
section) For each of the following scenarios, determine if there is an increase or a decrease in demand for the good in italics. a. The price of oranges increases. 2. b. The cost of producing tires increases. c. Samantha Brown, who is crazy about air travel, gets fired from her job. d. A local community has an unusually wet e. Many motorcycle enthusiasts enjoy riding cycles rises. spring and a subsequent problem with mos- quitoes, which can be deterred with citronella. without helmets (in states where this is not prohibited by law). The price of new motor-Explanation / Answer
Consider the given problem here we can analyze all these scenarios whether the demand for the good will increase or decrease.
a).
Now, if the price of “oranges” increases => the quantity demanded for orange will be reduced. As we know that according to the law of demand as the “P” will increase => the quantity demanded will fall down. So, here also the demand for “orange” will reduce.
b).
Now, if the “cost of producing” tires increases, => the supply of "tires" will fall => the quantity demanded for tiers will also fall
c).
“Samantha Brown”, who is crazy about air travel. As she gets fired from her job, => she will reduce her demand => the demand for “air travel” will fall down.
d).
A local community has an unusually wet spring and subsequent problem with mosquitoes which can be deterred with “citronella”, => the community will using more “citronella”, => the demand for “citronella” will increase.
e).
Now, as the price of new motorcycles increases, => the demand for motorcycle will falls, and the “motorcycles” and “helmets” are complementary goods to each other, => the demand for “helmets” will also falls because of the fall in the demand for "motorcycle".
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.