Consider the market for taxi service in Washington, DC. Use demand-supply analysis to explain the effects (i.e., increase or decrease) on the equilibrium price and quantity from the following (considers each case separately; and assumes that only one side of the market is affected.):
-Bus drives go on strike.
Equilibrium Price: Quantity:
-Bus fares increase after a strike by bus drives.
Equilibrium Price: Quantity:
-Taxi drivers must pass a competency test, and a third of all drivers fail.
Equilibrium Price: Quantity:
-Gasoline prices increase
Equilibrium Price: Quantity:
-Half of the downtown parking lots are converted to office building.
Equilibrium Price: Quantity:
-The population of the city increases.
Equilibrium Price: Quantity:
1) In the past, the success of “young” Tiger Woods influenced many young people to become interested in learning to play golf. What was the effect on the equilibrium price and quantity of golf clubs?
2) The price of pencils increase and at the same time, the price of ink used in the construction of ballpoint pens decreases. What is the effect on the equilibrium price and quantity of ballpoint pens?