demand and supply how do you think each of the following aff

6. (Supply Shifters) List the five things that are held constant along a market supply curve, and identify the change in each that would shift that supply curve to the right-that is, that would increase supply. (Demand and Supply) How do you think each of the follow- ing affected the world price of oil? (Use demand and supply analysis.) a. Tax credits were offered for expenditures on home insulation. b. The Alaskan oil pipeline was completed. c. The ceiling on the price of oil was removed. 7. d. Oil was discovered in the North Sea. e. Sport utility vehicles and minivans became popular. f. The use of nuclear power declined. Demand and Supply)What happens to the equilibrium price and quantity of ice cream in response to each of the follow

Solution

Answer - 6 ) Market supply is the total supply of a commodity in a market at a price level during a period of time, where other things remains constant. those factors that remains constant are-

1. cost of production- if cost of production falls i.e input prices falls hence there will be an increase in supply hence curve shifts rightward

2. tecnology - if there is tecnological upgradement then there will be an increase in supply hence curve shifts rightward

3. price of related good- when price of related good rises then there will be an increase in supply hence curve shifts rightward

4.government policy- if government gives subsidies then there will be an increase in supply hence curve shifts rightward .

5. factor prices and there availability- if there is is huge availability then there will be an increase in supply hence curve shifts rightward .

Answer - 7 )

1. no effect

2. world supply of oil will increase as more oil will be available so oil price falls

3. no ceiling will give the oil producer the oppurtunity to increase price of oil hence oil price will rise

4. new oil discovery will lead to increase in availability of oil hence oil price falls.

5. when sports utility vehicles like cycle and minivans became popular then people oil need becomes less and hence demand falls and price increases.

6. no effect.