The situations below include an event and a market. For each...

The situations below include an event and a market. For each situation, determine how the event would affect the market equilibrium price and quantity of the market, and sort the situation into the appropriate category. Items (8 items) (Drag and drop into the appropriate area below) the price of broccoli falls: carrots the U.S. government imposes a tariff on tequila

Transcript

00:01 Okay, so we're going to answer from question a.

00:03 Stake.

00:05 Increasing consumer's income.

00:06 So if the stake is considered a normal good, an increasing consumer income will increase the demand for sake.

00:14 So i'm going to draw the supply and demand curve.

00:17 So this is the price.

00:19 This is the quantity.

00:21 So in all the graph that i'm going to draw, y -axis will be price.

00:25 X -axis will be quantity.

00:28 So let's say this is the supply.

00:31 This is the initial demand, so the demand will shift to right.

00:41 Okay, so this is the first equilibrium, and this is the new equilibrium.

00:48 So it results in higher prices and higher quantity.

00:55 B, movies decrease the price of bowling.

00:59 So the bowling and movies are substitute goods, so a decrease in the price of bowling makes it more attractive relative to movies.

01:09 So here the demand for movies decrease, and demand curve shifts to the left so this is movies supply and demand demand shifts to left initial equilibrium and initial new equilibrium so this is movies this is beef see so the price of gold is expected to rise in the future so expectation of future price increases typically boosts current demand as consumers and investors rush to buy before prices go up.

02:01 So demand to the right.

02:03 Supply and demand.

02:06 Demand to the right.

02:10 Okay.

02:15 So here the higher taxes on producers, producers often lead to higher prices for consumers, which can reduce the supply as it costs more to bring the product to market.

02:26 So supply curve would shift to left.

02:34 Supply 1.

02:36 Demand...

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