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When a cold snap hits florida

04/05/2021 Client: muhammad11 Deadline: 2 Day

SMC Economic Problems Supply & Demand Diagrams Schedules & Curves Worksheet
Subject
Economics

School
Santa Monica College

Question Description
Please answer these three problems I will send you a picture clarifying the way problem 8 and 11 are set up.

1. Explain each of the following statements using supply-and-demand diagrams.

a. “When a cold snap hits Florida, the price of orange juice rises in supermarkets throughout the country.”

b. “When the weather turns warm in New England every summer, the price of hotel rooms in Caribbean resorts plummets.”

c. “When a war breaks out in the Middle East, the price of gasoline rises and the price of a used Cadillac falls.”

8. The market for pizza has the following demand and supply schedules:

Price Quantity Demanded Quantity Supplied $4 135 pizzas 26 pizzas 5 104 53 6 81 81 7 68 98 8 53 110 9 39 121

a. Graph the demand and supply curves. What are the equilibrium price and quantity in this market?

b. If the actual price in this market were above the equilibrium price, what would drive the market toward the equilibrium?

c. If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium?

11. Suppose that the price of basketball tickets at your college is determined by market forces. Currently, the demand and supply schedules are as follows: Price Quantity Demanded Quantity Supplied $4 10,000 tickets 8,000 tickets 8 8,000 8,000 12 6,000 8,000 16 4,000 8,000 20 2,000 8,000

a. Draw the demand and supply curves. What is unusual about this supply curve? Why might this be true

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