Question

Imagine the market for leather made basketballs. Please illustrate and specify the change in equilibrium price and quantity. (make sure you graph properly)
a .A popular playercomes to town that encourages kids to play more basketball
b. The price of footballs increases
c.Technological change occurs in the production of basketballs
d. The price of leather increases
e. Income decreases and at the same time the price of leather increases
f. The price of footballs increases and at the same time the number of basketball sellers increases
g. Basketball becomes more popular and at the same time a technological change in the production of basketballs occurs

Answer 1

Answer:

Please check the attached images for the graphs

Explanation:

a. If a popular player encourages kids to play more basketball, the demand for leather basketballs would increase. This would shift the demand curve for leather basketballs to the right. Equilibrium price and quantity would increase

b. It can be assumed that footballs are a substitute for basketballs. If the price of footballs increases, the demand for basketballs would increases. this would shift the demand curve for leather made basketballs to the right.  Equilibrium price and quantity would increase

A technological change would increase the supply of basketballs. The supply curve would shift to the right. Equilibrium price would fall and equilibrium quantity would rise

d. an increase in the price of leather would increase the cost of production. This would make make producing leather basketballs more expensive. As a result, the supply of basketballs would fall. This would increase equilibrium price and equilibrium quantity would fall.

e.  decrease in income would reduce the demand for basketballs. This would shift the demand curve to the left. Equilibrium price and quantity would fall.  an increase in the price of leather would increase the cost of production. This would increase equilibrium price and equilibrium quantity would fall. Taking these two effects together, there would be an indeterminate effect on equilibrium price and equilibrium quantity would fall.

f. If the price of footballs increases, the demand for basketballs would increases, this would shift the demand curve for leather made basketballs to the right.  Equilibrium price and quantity would increase. If the number of sellers increases, the supply of basketballs increases. This would lead to an increase in equilibrium quantity and a fall in equilibrium price. Taking this two effects together, there would be an indeterminate effect on equilibrium quantity and equilibrium price would fall

g, If basketball becomes more popular, the demand for basketball would increase. Equilibrium price and quantity would increase. A technological change would increase the supply of basketballs. This would increase its supply. The supply curve would shift to the right. Equilibrium price would fall and equilibrium quantity would rise. Taking these two effects together there would be an indeterminate effect on equilibrium price and equilibrium quantity would increase