Econ 40 Essay

1. Given the products below and the events that affect them, indicate what happens to demand or supply, and the equilibrium price and quantity in a competitive market. Identify the determinant of demand or supply that causes the shift.

(a) Digital cameras. There are improvements in the technology that increase the economic efficiency of production.

(b) Automobiles. Consumer incomes rise as the economy moves out of recession.

(c) Beef. Chicken prices fall because of a decline in the cost of feeding chickens.

(d) Fast-food meals. The government imposes a significant tax on fast-food meals.