Determinants of Demand & Supply

1. Joshua’s income increases while federal taxes increase; therefore, please illustrate by constructing a supply and demand graph the direction in which the
   curves will shift and state the new equilibrium price and quantity; for example, state whether price and quantity increased, decreased, or are indeterminate.
   Please explain your rationale based on the determinants of demand and supply.
2. Winston is disappointed in the new SUV he recently purchased. He was excited about the new technology incorporated in his SUV, but they did not live up
   to his expectations; therefore, please illustrate by constructing a supply and demand graph the direction in which the curves will shift and state the new
   equilibrium price and quantity; for example, state whether price and quantity increased, decreased, or are indeterminate. Please explain your rationale based
   on the determinants of demand and supply.
3. Kim is in the market for a new automobile, and since she was just promoted at work, her taste in higher-end automobiles has increased, but to her surprise,
   taxes have decreased, which makes a new automobile more attractive; therefore, please illustrate by constructing a supply and demand graph, the direction
   in which the curves will shift and state the new equilibrium price and quantity; for example, state whether price and quantity increased, decreased, or are
   indeterminate. Please explain your rationale based on the determinants of demand and supply.
4. U.S. agricultural farmers are excited since the government announced an increase in subsidies even though the substitutes for agricultural goods that are
   imported have increased in demand; therefore, please illustrate by constructing a supply and demand graph the direction in which the curves will shift and
   state the new equilibrium price and quantity; for example, state whether price and quantity increased, decreased, or are indeterminate. Please explain your
   rationale based on the determinants of demand and supply.
5. Due to advanced technology, substitute goods for higher education have seen an increase in demand. Please illustrate this circumstance by constructing a
   supply and demand graph, showing the direction in which the curves will shift, and state the new equilibrium price and quantity; for example, state whether
   price and quantity increased, decreased, or are indeterminate. Please explain your rationale based on the determinants of demand and supply.
   

Sample Solution