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If these two shifts occur at the same time, what will happen to the equilibrium price (P*) and quantity (Q*)? O P* will increase and Q* will increase P* will increase and Q* will decrease O P* will decrease and Q* will increase O P* will decrease and Q* will decrease O P* will increase; the effect on Q* is ambiguous O P* will decrease; the effect on Q* is ambiguous Q* will increase; the effect on P* is ambiguous O Q* will decrease; the effect on P* is ambiguous

If these two shifts occur at the same time, what will happen to the equilibrium price (P*) and quantity (Q*)? O P* will increase and Q* will increase P* will increase and Q* will decrease O P* will decrease and Q* will increase O P* will decrease and Q* will decrease O P* will increase; the effect on Q* is ambiguous O P* will decrease; the effect on Q* is ambiguous Q* will increase; the effect on P* is ambiguous O Q* will decrease; the effect on P* is ambiguous

Macroeconomics
Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter3: Supply And Demand: Theory
Section: Chapter Questions
Problem 7WNG
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Figure 5 below represents two different shifts that occurs in the market for potato chips. All of the shifts go from the curves labeled with a "1" to curves labeled with a "2". Assume that potato chips are an inferior good. Refer to the figure as you answer the questions that follow. P Shift 1 S2 S1 D1 Figure 5 Shift 2 S1 D1 D2
Transcribed Image Text:Figure 5 below represents two different shifts that occurs in the market for potato chips. All of the shifts go from the curves labeled with a "1" to curves labeled with a "2". Assume that potato chips are an inferior good. Refer to the figure as you answer the questions that follow. P Shift 1 S2 S1 D1 Figure 5 Shift 2 S1 D1 D2
Refer to Figure 5. If these two shifts occur at the same time, what will happen to the equilibrium price (P*) and quantity (Q*)? OP* will increase and Q* will increase O P* will increase and Q* will decrease P* will decrease and Q* will increase O P* will decrease and Q* will decrease O P* will increase; the effect on Q* is ambiguous O P* will decrease; the effect on Q* is ambiguous O Q* will increase; the effect on P* is ambiguous O Q* will decrease; the effect on P* is ambiguous
Transcribed Image Text:Refer to Figure 5. If these two shifts occur at the same time, what will happen to the equilibrium price (P*) and quantity (Q*)? OP* will increase and Q* will increase O P* will increase and Q* will decrease P* will decrease and Q* will increase O P* will decrease and Q* will decrease O P* will increase; the effect on Q* is ambiguous O P* will decrease; the effect on Q* is ambiguous O Q* will increase; the effect on P* is ambiguous O Q* will decrease; the effect on P* is ambiguous
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