Question

Explain what happens to supply, price, and quantity when the following condition occur: a) A new technology is developed to pick peaches b) The government allows more furniture input from China. c) Interest rates are lowered to help spur the economy. d) The cost of rubber which is used in the manufacturing of tires increases e) The government imposes a tax in imports of foreign cars.

Answer 1

Answer:

Consider the following explanation

Explanation:

A) Production of peaches will increase, Thus supply will increase and price will reduce and quantity of peaches will increase

B) The price of furniture will fall, The supply of furniture will increase and quantity of furniture will increase

C) The supply of money will increase, The cost of borrowing will go down, The quantity of money loaned from bank increases

D) The supply of rubber will increase, The price will increase, The quantity demanded will rapidly decrease.

E) Supply will remain the same, The price will increase and quantity demanded will decrease.