Question

name date period ap macroeconmics 7 the price of home computers decreases significantly (analyze computer games.) 1 draw and label equilibrium 2 the change: supply or demand increase or decrease shifter price of complements 3 after price ↑ quantity ↑ 8. the federal government imposes a $5 per game tax on the manufacturers of the games. 1 draw and label equilibrium 2 the change: supply or demand increase or decrease shifter 3 after price __ quantity 9. the manufacturer of the computer games raises the price on the games. 1 draw and label equilibrium 2 the change: supply or demand increase or decrease shifter 3 after price quantity 10 to promote american production, congress provides a subsidy to game producers. (analyze only american firms) 1 draw and label equilibrium 2 the change: supply or demand increase or decrease shifter 3 after price quantity 11 a large firm entered the game business with a new line of games. (analyze the whole game industry) 1 draw and label equilibrium 2 the change: supply or demand increase or decrease shifter 3 after price quantity 13 in order make computer games available to low - income families, congress sets a price ceiling for the games. 1 draw and label equilibrium 2 the change: supply or demand increase or decrease shifter 3 after price quantity 14 the popularity of the computer games increases in the world markets. at the same time new technology lower production costs. (double shift) 1 draw and label equilibrium 2 the change: demand: increase or decrease shifter supply: increase or decrease shifter 3 after price quantity __ reflection: what concepts are you getting very well? graphing supply and demand shifter curve what

Explanation:

Let's solve question 8 step by step:

Step 1: Draw and Label Equilibrium

First, we draw a supply - demand graph. The vertical axis is price (\(P\)) and the horizontal axis is quantity (\(Q\)). The supply curve (\(S\)) is upward - sloping and the demand curve (\(D\)) is downward - sloping. Their intersection is the equilibrium point (\(E\)), with equilibrium price \(P_e\) and equilibrium quantity \(Q_e\).

Step 2: Analyze the Change

• Supply or Demand?: The government imposes a \$5 per game tax on manufacturers. Taxes on producers affect the cost of production. An increase in production costs will shift the supply curve. So, it is a supply - side change.
• Increase or Decrease?: A tax on manufacturers increases their cost of production. At each price level, producers are willing to supply less quantity. So, the supply will decrease.
• Shifter: The shifter here is the "tax on producers" (or "cost of production").

Step 3: Analyze After the Change

• Price: When supply decreases (the supply curve shifts to the left), the new equilibrium (where the new supply curve \(S_1\) intersects the demand curve \(D\)) will have a higher price. So, price increases.
• Quantity: With a leftward shift of the supply curve and a downward - sloping demand curve, the equilibrium quantity will decrease.

Answer:

1. Equilibrium Drawing: Draw \(S\) (upward - sloping), \(D\) (downward - sloping), label \(E\), \(P_e\), \(Q_e\).
2. The Change: Supply; Decrease; Shifter: Tax on producers (cost of production)
3. After: Price \(\boldsymbol{\uparrow}\) (increases); Quantity \(\boldsymbol{\downarrow}\) (decreases)