Graphing : Mooville is a small town in texas. assume that beef is a normal good. what happens to the amount of beef dfemanded or supplied in each of the following cases? draw a separate demand and supply curve for each part of this question, label the axes, and show how the change will shift the demand or supply curve. show initial and final equilibrium price (P* and P**) and initial and final equilibrium quantity (Q* and Q**)for beef?

Question

A. (Graph)A Subsidy that reduces production costs for beef producers.

Answer 1

I presume you know how to draw supply and demand graphs (P on the y-axis, Q on the x-axis, ... etc).

A reduction in production costs would increase supply. Shift the supply curve outward. What happens to equilibrium price? equilibrium quantity?

Answer 2

y+2x

Answer 3

(b) Mooville is a small town in Texas. Assume that beef is a normal good. What happens to the amount of beef demanded or supplied in each of the following cases? Illustrate a separate demand and supply graph for each part of this question and show how the change will shift the demand and/or supply curve.
i. A subsidy that reduces production costs for beef producers
ii. A reduced supply of fish (consumers view beef and fish as substitutes)
iii. A rise in the wage rate in the beef industry
iv. A rise in income
v. An improvement in the productivity of producing beef
vi. A bad tomato crop (assume beef and ketchup are complements and tomatoes are used to produce ketchup)