ECO 1000 Rasmussen Relative Magnitudes of Demand and Supply Curve Shifts Questions

Description

 7. If taxpayers are given a tax credit for the purchase of electric automobiles, please illustrate on the graph given below a shift in the supply or a shift in demand curve for electric automobiles. Please state whether price will increase or decrease and whether quantity will increase or decrease.8. If agricultural subsidies were cut, please illustrate on the graph below the direction or movement of the supply or demand curve. Please state whether the price will increase or decrease and whether quantity will increase or decrease.9. If tastes increase and taxes decrease, please illustrate the direction or movement of the supply and demand curves and state whether price will increase, decrease, or remain at the same level and state whether quantity will increase, decrease, or remain at the same level.10. If input costs decrease and income decrease by the same proportion, please illustrate the direction or movement of the supply and demand curves and state whether price will increase, decrease, or remain at the same level and state whether quantity will increase, decrease, or remain at the same level.1
Competency 02 Assessment
Ariel Nelson
Rasmussen University
Principles of Economics
Audra Sherwood
April 21, 2023
2
Competency 02 Assessment
1. Law of Supply: – It states that keeping all the factors constant, the price and the quantity
of product supplied in a market are related to each other, that is when the price of a
product rises, its quantity supplied also increases as the firms will try to maximize their
profits.
2. Law of Demand: – It states that keeping all the factors constant, the price and the
quantity of the product demanded are inversely related to each other, that is when the
price of a product rises its demand in the market decreases
3. Some of the determinants of supply are: 
Technological Advancements.

Number of Sellers in the Market.

Price of the Substitute products.

Production cost.
4. Some of the determinants of demand are: 
Income of the targeted customers.

Choices and Preferences.

Product credibility/ quality

Product expectation.

Price of the product.
5. Market Equilibrium: – It is a situation when the quantity of a product demanded in the
market equals the quantity of the product supplied in the market.
3
6. An increase in Joshua’s income will shift his demand curve to the right. An increase in
federal taxes will reduce his disposable income and hence it will shift his demand curve
to the left. So, if the effect of an increase in his income is greater than the effect of an
increase in federal tax, then the overall effect will be that his demand curve will shift to
the right. If the effect of the higher tax is greater than his increase in income then the
overall effect will be that his demand curve will shift to the left. We don’t know which
effect is greater. So, we can’t determine the effect on price and quantity.
7. Increased tax credit would increase purchasing power which would result in increased
demand and shift the demand curve to the right. For the increased demand suppliers
would increase the supply and shift to right. The prices of automobiles might remain the
same or will subsequently decrease.
8. Reduction in agricultural subsidies will result in increased costs of the factors of
production which will cause the supply curve to shift to the left. The prices of agricultural
goods will increase, thus reducing the demand.
9.
With increased tastes and a decrease in taxes there will be a relative increase in demand
which would reduce the price of the commodities for which the supply and demand curve
will shift to the right.
10. With the reduction in the cost of inputs the production cost reduces which would result
in a decrease in the prices of goods and services. The supply and demand curves shift to
the right in this case. But with the reduction in consumer’s income, purchasing power
reduces, and the demand for goods too. However, when these two factors change by the
same, the demand and supply of the commodity do not change and nullify the effects.

Purchase answer to see full
attachment

We offer the bestcustom writing paper services. We have done this question before, we can also do it for you.

Why Choose Us

  • 100% non-plagiarized Papers
  • 24/7 /365 Service Available
  • Affordable Prices
  • Any Paper, Urgency, and Subject
  • Will complete your papers in 6 hours
  • On-time Delivery
  • Money-back and Privacy guarantees
  • Unlimited Amendments upon request
  • Satisfaction guarantee

How it Works

  • Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
  • Fill in your paper’s requirements in the "PAPER DETAILS" section.
  • Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
  • Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
  • From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.