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A: Number of bread = 15 Price of bread = P6 Number of Juice = 5 Price of juices = P12 Income = P150
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- Suppose that the incomes of buyers in a particular market for an inferior good increase and there is also an increase in input prices. What would we expect to occur in this market? Select one: O a. The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous. O b. The equilibrium price would decrease;but the impact on the amount sold in the market would be ambiguous. out Oc Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. O d. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguousSuppose that California wildfires destroy one-third of the grape crop in the state. What would be the expected effect on the market for raisins? O increase in equilibrium price, increase in equilibrium quantity O decrease in equilibrium price, increase in equilibrium quantity decrease in equilibrium price, decrease in equilibrium quantity no change in the market for raisins increase in equilibrium price, decrease in equilibrium quanttiyWhat will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start producing music compact discs, and music lovers experie an increase in income? Select one: O a. Equilibrium price increases and equilibrium quantity decreases O b. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. O c. Equilibrium price would decreaşe, but the impact on eguilibrium quantity would be ambiguous. O d. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. e. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
- Suppose cauliflower and broccoli are substitutes in consumption. Suppose further that the price of cauliflower is increasing. Everything else held constant, consumer surplus in the broccoli market will and economic surplus in the broccoli market will, Select one: O A. increase; increase O B. increase; decrease Oc. decrease; decrease O D. be ambiguous; increase OE. decrease; increase OF. increase; be ambiguous O G. be ambiguous; decrease O H. be ambiguous; be ambiguous OL. decrease; be ambiguousSuppose an economic boom causes incomes to increase and, at the same time, drives up wages for the sales representatives who work for cell phone companies. Assume that smartphones are a normal good. This will cause the: O price of cell phones and the equilibrium quantity to rise. O price of cell phones to rise, but the change in the equilibrium quantity is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply. O price of cell phones and the equilibrium quantity to fall. O quantity of cell phones to rise, but the change in the equilibrium price is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply.Other things remaining the same, the law of demand implies that: Select one: O a. as the price of a product increases, the quantity demanded of the same product decreases O b. as the price of a product increases, the quantity demanded of a substitute product decreases c. as the price of a product increases, the demand of the same product decreases demanded of a complementary product decreases O d. as the price of a product increases, the quantity demanded of a complementary product decreases By definition: a substitute is a good that: Select one: O a. has same likeness as another good O b. O c. of lower quality than another good O d. of higher quality than another good that is not used in place of another good
- The demand for a given good will decrease when the price of its substitute and the demand for a given good also decreases when the price of its complement Select one: O a. None of the provided answers are correct O b. rises; rises O c. falls; falls O d. falls; rises Assume a demand curve for coffee; Which of the following would NOT shift the demand curve for coffee? Select one: O a. an increase in wages O b. a decrease in the price of tea O c. price of coffee changes O d. a change in taste for teaWhat is the sum of all individual demand curves for a product? Select one: summation demand cross out O b. market demand cross out Oc consumption demand cross out O d. total demand cross outIf butter and margarine are substitutes, an increase in the price of butter causes: Select one: O a. quantity demanded of margarine to fall and the demand curve for butter to shift toward the origin O b. quantity demanded of butter remains constant, but the demand for margarine decreases O c. the demand curve for both butter and margarine shift O d. decrease in quantity demanded for butter and an outward shift of the demand curve for margarine
- QUESTION 10 Assume that income of the people buying video games increases and at the same time it is cheaper for the producers for those video games to produce such games. What would we expect to happen in the market? O a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. O b. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. O. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. O d. Equilibrium quantity and price would increase. QUESTION 11 Assume that the price of cheese has decreased and the price of garlic bread (a substitute good) has decreased at the same time. How this will affect the market for pizzas? O a. Quantity of pizza would fall, and the effect on price would be ambiguous. O b. Price of pizza would rise, and the effect on quantity would be ambiguous. Oc. Quantity of pizza would rise, and the effect on price would be ambiguous. O d. Price of…If the supply of and demand for a product increase at the same time, then equilibrium O quantity and equilibrium price must both decline. O quantity must decline, but equilibrium price may either rise, fall, or remain unchanged. O price must fall, but equilibrium quantity may either rise, fall, or remain unchanged. O quantity must increase, but equilibrium price may either rise, fall, or remain unchanged.If goods A and B are substitutes, an increase in the price of A will result in Select one: a. no difference in the quantity sold of either good O b. None of the answers are correct O c. increases the demand for O d. reduces the demand for B