Given the products and conditions below, indicate how the events affect the demand, supply, equilibrium price and quantity of the goods. (a) Videotapes. The price of DVDs and DVD players decreases. New technology makes videotapes easier to produce. The shift in demand is greater than shift in supply. (b) Roses. The Valentine’s Day season has just begun for the floral industry. A new pesticide decreases the number of flowers affected by pests. The shift in supply is greater than the shift in demand. (c) Tomatoes. FDA publicly announces that eating tomatoes and tomato-based products can significantly reduce one’s risk of developing cancer. An unexpected freeze late in the tomato season destroys a significant portion of this year’s crop. The shift in supply is greater than shift in demand. (d) Healthcare. Highly publicized malpractice cases decrease consumer confidence in healthcare providers. Malpractice insurance premiums paid by doctors increase. The shift in demand is greater than shift in supply.
- Given the products and conditions below, indicate how the events affect the demand, supply,
equilibrium price and quantity of the goods.
(a) Videotapes. The price of DVDs and DVD players decreases. New technology makes videotapes easier to produce. The shift in demand is greater than shift in supply.
(b) Roses. The Valentine’s Day season has just begun for the floral industry. A new pesticide decreases the number of flowers affected by pests. The shift in supply is greater than the shift in demand.
(c) Tomatoes. FDA publicly announces that eating tomatoes and tomato-based products can significantly reduce one’s risk of developing cancer. An unexpected freeze late in the tomato season destroys a significant portion of this year’s crop. The shift in supply is greater than shift in demand.
(d) Healthcare. Highly publicized malpractice cases decrease consumer confidence in healthcare providers. Malpractice insurance premiums paid by doctors increase. The shift in demand is greater than shift in supply.
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