Question

Can you please show me where in the graph the A,B,C,D are up , down right left ??

09/18/18 32% Question (2 points) For the following questions, you need to determine whether each of the four factors given creates a positive demand shock, a negative demand shock, a positive supply shock, or a negative supply shock for the market in bold. For example, if you are told. 'Automobile workers receive higher wages: automobiles," you would indicate that the supply of automobiles will decrease and the supply curve will shift to the left. 1st attempt Part 1 (1point) United States decline: diapers coffee drinkers suffer due to a Decmase Supply DConsumer 08/32

Answer 1

PART 1:

1: Birth rate is the United States decline: Diapers

When the birth rates decline,meaning the number of babies born are less, hence there will be a decline in the demand for diapers.

Answer: Factors that shift demand to the left (Decrease Demand)

B: Henry Ford develops assembly-line production: Automobiles

In a Assembly line production, each employee is given a specific job to be done, once one worker finishes the said part of the production, the good goes to the next worker. This leads to an effeciently produced product, hence the supply of such products will increase. Supply for Automobile will increase.

Answer: Factors that shift supply to the right (Increase Supply)

C:Starbucks Coffee drinkers suffer due to small coffee harvest: Starbucks Coffee.

As there is low coffee harvested, starbucks cannot produce enough coffee for its consumers, hence the supply of starbucks coffee will decrease.

Answer: Factors that shift supply to the left ( Decrease Supply)

C: Consumer incomes decrease: Public Transportation

When the income of people decrease, there is less money to be spent on fuel for a self-owned vehicle, hence the individuals will prefer to travel using the public transport, thus increasing the demand for public transport.

Answer: Factors that shift demand to the right ( Increase Demand)

PART 2:

A: The price of beer increases: Solo cups

As the price of beer increase, the demand for the solo cups will decrease as an individual will tend to drink beer directly from the bottle instead of buying a solo cup to consume the beer.

Answer: Factors that shift demand to the left (Decrease Demand)

B: The Government provides subsidies to ethanol producers: Ethanol

When government decides to provide subsidies to companies that produce ethanol, the supply for ethanol will increase, as the price of ethanol will decrease. This is because subsidies are the amount of money given to a company to keep the prices of goods and services low.

Answer:  Factors that shift supply to the right (Increase Supply)

C: Natural gas producers are making large economic loses: Natural gas

Loses occur when the business spends more than it receives. So when companies that produces natural gases are running under loses, the supply of natural gas will decrease.

Answer: Factors that shift supply to the left ( Decrease Supply)

D: The price of playstation increases: Xbox

Playstations are manufactured by Sony and Xbox is manufactured by Microsoft. These are gaming electronics. When the Price of one gaming electronic increases, the demand for the other increases, thus as the price for Playstion increase, the demand for an Xbox increases.

Answer: Factors that shift demand to the right ( Increase Demand)