Suppose katie mark and bobby are the only consumers in the

Question

1) Suppose Katie, Mark, and Bobby are the only consumers in the market for ice cream. Using the demand schedules in the table below, draw the market demand curve for ice cream.

2) Soft drinks and milk are substitutes for consumers. Draw a graph showing the effect of a decrease in the price of milk on the demand for soft drinks.

3) The table below shows supply schedules for the two nail salons in town, Nancy's Nails and Fancy Nails. Draw the market supply of manicures?

4) Last year a very severe ice storm hit the north counties of New York state, and the states of Vermont and Maine. Electric poles were down and no one had power for days. It was reported that the price of kerosene heaters skyrocketed and the number purchased increased during this time. Using a supply and demand diagram, show the impact of the ice storm on the market for kerosene heaters.

5) Consumers can use either natural gas or heating oil to warm their houses. Suppose the price of natural gas increases. Use a demand and supply diagram to show the impact of the higher price of natural gas on the market for home heating oil.

Answer 1

Some of the questions of Microeconomics are provided below. Answer to each question and provide a detail description (method and concepts used). Q1. Last year an extremely severe ice storm hit the north counties of New York State and the states of Vermont and Maine. Electric poles were down and no one had power for days. This was reported that the price of kerosene heaters skyrocketed and the number purchased rose throughout this time. By using a supply and demand diagram, represent the impact of the ice storm on the market for the kerosene heaters. Q2. Consumers can make use of either natural gas or heating oil to warm their houses. Assume that the price of natural gas increases. Make use of a demand and supply diagram to represent the impact of the higher price of natural gas on the market for home heating oil.