Demand and Supply Equations with Equilibrium and Graphing

1. It has often been said that craft unions (electricians, carpenters, etc.) possess considerably greater power to raise wages than do industrial unions (automobile workers, steel workers, etc.). How would you explain this phenomenon in terms of demand elasticity?

2. What would you expect to happen to spending on food at home and spending on food in restaurants during a decline in economic activity? How would income elasticity of demand help explain these changes?

3. Please see attachment for question #3
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...workers and are hard to replace. This shows that the job of the craft workers are indispensable than that of industrial workers.

2. What would you expect to happen to spending on food at home and spending on food in restaurants during a decline in economic activity? How would income elasticity of demand help explain these changes?

Income elasticity changes in response whether the product/good being consumed is a need or a luxury.
A decline in economic activity means that income also experiences a downward trend.

Demand for luxury goods declines with a fall in income. During this time spending on food in restaurants would be decreasing since eating out is considered a luxury.
Corollary to this, a decreased income will increase spending on food at home.

3. The following relations describe the supply and demand for posters.
Qᴅ = 65,000 - 10,000P and Qs = -53,000 + 15,000P
Where Q is the quantity and P is the price of a poster, in dollars.
a. Complete the following table.
b. What is the equilibrium price?
c. Graph

Step by Step Computations:

Supply equation: Qs = -53,000 + ...