Supply Increases Price

Homework Week 23. What effect leave alone severally of the interest have on the learn for small automobiles such as the mini Cooper and Smart car?a. Small automobiles become more cool This lead increase the withdraw in small automobilesb. The expense of bad automobiles rises (with the scathe of small autos remaining the same) The demand will increasec. Income declines and small autos atomic build 18 an inferior good. The demand will increased. Consumers anticipate that the wrong of small autos will greatly come downward(a) in the near future. The demand will slumpe. The price of gasoline substantially drops This statement is unclear. You cant truly tell if the demand for small automobiles will increase or decrease just because the gas prices drop substantially.6. What effect will each of the succeeding(a) have on the summate of auto tires?a. A technological show up in the methods of producing tires. Supply will increaseb. A decline in the number of firms in the tir e industry. Supply will decreasec. An increase in the price of rubber used in the production of tires. Supply will decreased. The anticipation that the balance price of auto tires will be lower in the future than currently. Supply will increasee. A decline in the price of large tires used for semi-trucks and earth hauling rigs (with no change in the price of auto tires). Supply will increasef. The levying of a per-unit tax in each auto tire sold. Supply will increaseg. The granting of a 50-cent-per-unit reward for each auto tire produced. Supply will increase9. How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium total in a competitive trade that is, do price and quantity rise, fall or remain unchanged, or are the answers indeterminate because they depend on the magnitudes of the shifts? Use supply and demand diagrams to verify your answers.a. Supply decreases and demand is never-ending Price goes up and quantity goes downb. p ostulate decreases and supply is constant Price goes down and quantity also goes downc. Supply increases and demand is constant Price goes down and quantity upd. Demand increases and supply increases Price is indeterminate and the quantity goes upe. Demand increases and supply is constant Price goes up and quantity upf. Supply increases and demand decreases Price goes down and the quantity is indeterminateg.Demand increases and supply decreases Price goes up and the quantity is indeterminateh. Demand decreases and supply decreases Price is indeterminate and the quantity goes down11. Critically evaluate In analyse the two equilibrium positions in figure 3. 7a, I see a larger amount is actually purchased at a higher price. This refutes the fair play of demand The increase in demand from D1 to D2 increases both equilibrium price and equilibrium quantity. On the second equilibrium we can see that demand has increase causing buyers to buy more at higher prices than the number one equ ilibrium.