For each event, illustrate the impact on the relevant market and determine what

ID: 1250017 • Letter: F

Question

For each event, illustrate the impact on the relevant market and determine what will happen to the equilibrium price and quantity in that market.

Event - Economic growth is expected to improve in the next two quarters.

Market For - Aluminum

Show which curve shifts - ?

Equilibrium price rise or fall?

Equilibrium quantity increase or decrease?

Event - Plastics production capacity has increased.

Market for - Plastics

Show which curve shifts - ?

Equilibrium price rise or fall?

Equilibrium quantity increase or decrease?

Event - The Japanese government has decided to subsidize its domestic automobile producers with stimulus money.

Market for - Automobiles

Show which curve shifts - ?

Equilibrium price rise or fall?

Equilibrium quantity increase or decrease?

Event - manufactures who use plastic as an input have access to cheaper plastic

Market for - Manufactured goods that use plastic as an input

Show which curve shifts - ?

Equilibrium price rise or fall?

Equilibrium quantity increase or decrease?

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