Question

Determine how each scenario will impact either supply or demand in the given market.

Answer 1

Answer:

Please see the answer together with the explanation in the below Explanation section.

Explanation:

The price of goose feathers, an input for pillows, increases sharply: Supply will decreases as some suppliers will move away from the market due to increase in production cost causing them to a profitability level lower than their expectation.

Researchers develop a higher-yielding, insect-repellant strain of rice: Supply of price will increase as with higher productivity rice plant.

During the Great Recession, the average income for an American worker fell sharply. During that time, families began preparing more of their own meals: demand will decrease as less people is willing/able to afford meals at the current market price, supply will also decrease as some of the restaurant closes down due to low revenue, some who still maintain expected profit margin will decrease price to meets people's affordability.

Spam unveils a new flavor, barbeque, which has students intrigued. The students transition from buying ham to Spam: Demand will increase as student prefer spam over ham and they are willing to pay more to enjoy better taste. With higher price, there is more motivation for spam to produce more which will also increase supply side of the market.

iDecide, a consulting firm, joins the market for accounting: supply will increase as there are more suppliers in the markets.