11. If the future price of good X is expected to increase, then what change in the equilibrium will we observe in the market for good X? O a. increase in equilibrium price and increase in equilibrium quantity O b. decrease in equilibrium price and decrease in equilibrium quantity O c. decrease in equilibrium price and increase in equilibrium quantity O d. increase in equilibrium price and decrease in equilibrium quantity e. no change in equilibrium price and no change in equilibrium quantity

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
Section: Chapter Questions
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QUESTION 11
11. If the future price of good X is expected to increase, then what change in the equilibrium will we observe in the market for good X?
O a. increase in equilibrium price and increase in equilibrium quantity
b. decrease in equilibrium price and decrease in equilibrium quantity
O c. decrease in equilibrium price and increase in equilibrium quantity
O d. increase in equilibrium price and decrease in equilibrium quantity
O e. no change in equilibrium price and no change in equilibrium quantity
QUESTION 12
12. Which of the following is a true statement about the interpretation of own-price elasticity:
O a. own-price elasticity is larger for Thorton's gasoline than for gasoline at the market level
O b. if own-price elasticity is greater than one, then that a good is a luxury
O c. own-price elasticity shows us how the demand curve shifts in response to price changes
O d. if own-price elasticity is greater than zero, then that good is a normal good
e. none of the above is a true statement
Transcribed Image Text:QUESTION 11 11. If the future price of good X is expected to increase, then what change in the equilibrium will we observe in the market for good X? O a. increase in equilibrium price and increase in equilibrium quantity b. decrease in equilibrium price and decrease in equilibrium quantity O c. decrease in equilibrium price and increase in equilibrium quantity O d. increase in equilibrium price and decrease in equilibrium quantity O e. no change in equilibrium price and no change in equilibrium quantity QUESTION 12 12. Which of the following is a true statement about the interpretation of own-price elasticity: O a. own-price elasticity is larger for Thorton's gasoline than for gasoline at the market level O b. if own-price elasticity is greater than one, then that a good is a luxury O c. own-price elasticity shows us how the demand curve shifts in response to price changes O d. if own-price elasticity is greater than zero, then that good is a normal good e. none of the above is a true statement
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