Show how demand or supply and price and quantity is affected

Show how demand or supply and price and quantity is affected by the following salt

1. The Salt producer’s union contract negotiations result in a $4/hr wage increase to their workers.

2. Price have decreases for sand that consumers purchase to combine with the road salt they use

3. Because of the changing weather patterns new states and locations now need to purchase road salt this winter.

4. A salt plant has to close its roads due to violations.

5. There is a decrease in price for a chemical based alternative to road salt.

6. The government has held the price of road salt below equilibrium

7. An advancement in technology has increased the production capacity of road salt producers

8. Consumers begin to favor an eco-friendlier alternative instead of salt to melt ice/snow.

9. There has been a decline in the price of resources used by producers that make road salt.

The demand and supply determinants

#B;   Cost;    Exp(p,y);    Exp¶;    Pc;    Ps;    Px;    #S;    Sub;    Taste;    Tax;    Tech;    Yi;     Yn

Solution

1. As a result of increase in wage, the production cost of salt increases due to which the price increases. Hence demand falls as a result of which the quantity also falls.

2. As a result of decrease in price of sand used for salt-sand combination, the demand will increase which will increase the quantity.

3. Here tthe demand increases which will increase both the quantity and price.

4. Here the supply decreases which will decrease the quantity. As a result, price will increase.

5. The demand for road salt will decrease as a result of which quantity will decrease. Price will also decrease.

6. As price decreases, demand will increase which will increase the quantity.

7. Supply will increase which will increase the quantity while price will decrease.

8. Demand will decrease resulting in quantity and price.

9. Supply increases resulting from price decrease. Quantity will increase.