Answer to Question #64723 in Microeconomics for sristi poudel

Question

QUESTION 2

Ceteris paribus, an increase in the demand for yoga services has occurred at the same time when the number of yoga service providers has decreased due to stricter government regulations. Using demand and supply analysis, explain the impact on price and quantity in the market for yoga services?
(HINT: THERE ARE 2 FACTORS WORKING AT THE SAME TIME)

QUESTION 3

Recently, due to the discovery of bird flu, the Swedish government ordered the culling of a few hundred thousand chickens. This was accompanied, at the same time, by a fall in demand for live chickens. Using demand and supply analysis, explain the impact on price and quantity in the market for live chickens?
(HINT: THERE ARE 2 FACTORS WORKING AT THE SAME TIME)

Answer 1

QUESTION 2

If an increase in the demand for yoga services has occurred at the same time when the number of yoga service providers has decreased due to stricter government regulations, then the demand curve shifts rightward and the supply curve shifts leftward, so the price for yoga will increase and the change in quantity of yoga services can't be calculated without further information.

QUESTION 3

If the Swedish government ordered the culling of a few hundred thousand chickens, which was accompanied, at the same time, by a fall in demand for live chickens, then the demand curve shifts leftward and the supply curve shifts leftward too, so the change in price can't be calculated without further information and quantity of live chickens will decrease.