predict if the equilibrium price will increase or decrease. explain why and draw out scenario if necessary…

predict if the equilibrium price will increase or decrease. explain why and draw out scenario if necessary. predicting changes 24 watching tv is considered a health hazard. 25 the world experiences a shortage of raw materials used to make tvs. 26 mobile devices stop working and streaming becomes even more popular.

predict if the equilibrium price will increase or decrease. explain why and draw out scenario if necessary. predicting changes 24 watching tv is considered a health hazard. 25 the world experiences a shortage of raw materials used to make tvs. 26 mobile devices stop working and streaming becomes even more popular.

Answer

Brief Explanations:

  1. When watching TV is considered a health - hazard, demand for TVs will decrease. According to the law of supply and demand, with supply unchanged, a decrease in demand leads to a decrease in equilibrium price.
  2. A shortage of raw materials for making TVs will reduce the supply of TVs. With demand unchanged, a decrease in supply causes an increase in equilibrium price.
  3. If mobile devices stop working and streaming becomes more popular, demand for TVs may increase as people turn to TVs for streaming. With supply unchanged, an increase in demand leads to an increase in equilibrium price.

Answer:

  1. Equilibrium price will decrease because demand decreases due to health - hazard perception.
  2. Equilibrium price will increase because supply decreases due to raw material shortage.
  3. Equilibrium price will increase because demand increases due to mobile device issues and streaming popularity.