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Supply and Demand: Indeterminancy

In the market for corn flakes the price of cardboard used in packing the cereal has risen at the same time that the Surgeon General releases a report detailing the dangers of a diet high in corn products. What happens to the equilibrium price and equilibrium quantity relative to the initial equilibrium before these two changes?
In the market for bottled water people realize that drinking bottled water causes significant environmental damage due to the waste issues posed by plastic bottles. At the same time, scientists release a study documenting the beneficial effects of drinking water from naturally occurring aquifers (the underground storage place for water that provides the water for bottled water). What happens to the equilibrium price and equilibrium quantity relative to the initial equilibrium before these two changes?
In the market for insulation, people realize that they can substantially reduce the costs of their winter heating bills if their houses are well insulated. At the same time, the government in an effort to increase clean energy jobs passes a law subsidizing insulation producers. What happens to the equilibrium price and equilibrium quantity relative to the initial equilibrium before these two changes?
In the market for chocolate, people read that the consumption of chocolate has major health benefits. At the same time, the cost of growing and harvesting cocoa beans increases. What happens to the equilibrium price and equilibrium quantity relative to the initial equilibrium before these two changes?
Answer. 1.The demand for corn flakes will shift to the left and the supply of corn
flakes will shift to the left. With this information we know that the
equilibrium quantity will decrease while the equilibrium price may increase,
decrease, or remain the same relative to its initial level 2.The demand curve for bottled water will shift to the left when people
take into account the environmental damage, but it will shift to the right what they take into account the health benefits. From the information provided, we
do not know the relative size of the two shifts and so we cannot conclude
anything about the new equilibrium quantity and new equilibrium price relative
to their initial levels. 3.Both the demand and the supply curves…

for insulation will shift to
the right. The equilibrium quantity will increase relative to its initial level
while the equilibrium price may increase, decrease or remain the same relative
to its initial level. 4.The demand curve for chocolate will shift to the right while the
supply curve for chocolate will shift to the left. The new equilibrium price
will be greater than its initial level while the new equilibrium quantity may
increase, decrease, or remain the same as its initial level.

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