Please help me answer and understand these questions! Complete the following sup

Question

Please help me answer and understand these questions! Complete the following supply and demand problems using the Hill method. The price of books is held above equilibrium. What happens to the price and quality of book? The price of book is held below equilibrium. What happens to the price and quality of book? The price of peanut butter increases. What happens to the price and quality of jelly? The price of coke increases. What happens to the price and quality of pepsi? Population increases. What happens to the price and quality of all goods? People preferring close to pepsi. What happens to the price and quality of pepsi? People expect the price to gas to increase. What happens to the price and quality of gas? Ten thousand native Americans receive a payment from the government for settlement of a law suit. What happens to the price and quality of all inferior goods? The cost of making cars increases. What happens to the price and quality of cars?

Explanation / Answer

The price of book held above equilibrium. The price of the book will decreases and the prices reach to the equilibrium and the quantity of book will decreases. The price of the book is below the equilibrium so that the price of the book will increases and the demand for book will increases. Prices will increases till the equilibrium point is reaches The peanut butter and the jelly are substitute goods. So as the price of peanut butter increases demand for peanut butter decreases and the other hand demand for its substitute like jelly will increases. The price of the Jelly may same in the market for jelly. Coke and Pepsi are substitute goods. So as the price of Coke increases the demand for coke decreases and the demand for Pepsi will increases in the market. So the quantity demanded in the market will increases. And in the future the price of pepcy also increases and it will as with Coke. As the population increases the supply of commodity of all commodity remain fixed, so there will a shortage in the market. So the prices of the goods will increases int he market due to the high demand in the commodity. As the people start preferring coke to pepsy the demand for coke will increases and supply of coke may be the same in the market. So that the price Coke will increases in the market. On the other hand people will buy less pepsi so the price may fall in the market to increases the supply of the pepsi.

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