A) If high gasoline prices lead to a decrease in the demand for large trucks and SUVs, what will automobile companies do to sell the trucks and SUVs already manufactured?
The automobile companies who have produced large trucks that are not in demand because of gas prices will be sold at a discounted price. Consumers will not want to spend so much money on a huge vehicle that will burn tons of gas and also be spending even more money at the pump. So the only way a buyer would buy the vehicle is if its discounted at a good rate so that the gas price will not hurt as much because they got a deal on the suv.
B) Consider clothes sold at outlet malls. Have sellers produced too few or too many of the particular items based on demand? What actions are sellers taking to move their goods out the door?
Many sellers have produced too many clothes thinking the demand is high and then all of a sudden the demand slows drastically. When the demand does slow the seller will either discount the price tremendously or give a buy one get one free deal to interest customers into buying the unwanted product.
A) As the price of cars goes up, which marketplace wants will be the first to stop being satisfied? Give an example.
The marketplace that will be the first to go would be the car that had already not been selling before the price raise occurred. For example if a Cadillac escalade is not selling at the price of fifty five thousand dollars than its sure not going to sell at sixty five thousand because there was no buyers at the low price so why would there be any at a raised price.
B) Flooding in Iowa destroys some of the corn and soybean crop. What will happen to the price and quantity for each of these crops?
The price of the soy beans will rise and the quantity will go down because the less of the product there is and the higher the demand then the higher the price will be. So if a buyer wants two hundred corn and fifty soy beans...