suppry Distinguish between a change in supply and a change in quantity supplied,
ID: 1144856 • Letter: S
Question
suppry Distinguish between a change in supply and a change in quantity supplied, noting the cause(s) of each. LO3.3 the 5. In 2001 an outbreak of hoof-and-mouth disease in Europe led to the burning of millions of cattle carcasses. What im- pact do you think this had on the supply of cattle hides, hide REVIEW QUESTIONS 1 What effect will each of the following have on the de- mand for small automobiles such as the Mini-Cooper and Fiat 500? LO3.2 a. Small automobiles become more fashionable. b. The price of large automobiles rises (with the price of small autos remaining the same). c. Income declines and small autos are an inferior good. d. Consumers anticipate that the price of small autos will greatly come down in the near future. e. The price of gasoline substantially drops. the entire demand curve to the right or to the left. LO3.2 auto tires? LO3.3 a. A technological advance in the methods of producing tires 2. True or False: A "change in quantity demanded" is a shift of 3. What effect will each of the following have on the supply of b. A decline in the number of firms in the tire industry. c. An increase in the prices of rubber used in the produc- tion of tires. d. The expectation that the equilibrium price of auto tires will be lower in the future than currentlyExplanation / Answer
1) a) demand of small automobiles increases and demand curve will ahift rightward because price of small automobile has remained constant and other factor increases demand. Thus demand curve will shift rightward.
B)since large and small automobiles are substitue and increase in price of substitue good will increase the demand of small automobiles and shift the curve right.
C)Demand increases and shifts right because inferior goods are those goods whose demand increases as income decreases.
D)demand today decreases and thus shift leftward because expectation for future prices changes.
E)Demand curve shift right because gasoline and automobiles are complement goods
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