1 A rapid Covid test in New York sells for $50 dollars. Currently, 2000 tests are purchased per day. Recently two labs that produce rapid tests for New York closed. At the same time the state of New York requiredthat all public-school teachers take a rapid Covid test daily if not vaccinated. Because of these two changes,The equilibrium price will increase and change in the equilibrium quantity is ambiguous.The equilibrium price will increase and change in the equilibrium quantity is unambiguous.The change in the equilibrium price is ambiguous but the equilibrium quantity will increase.The equilibrium price will decrease and change in the equilibrium quantity is ambiguous.O O OO

Closing of labs that produced rapid tests will decrease the supply of rapid tests. This will lead to…

Answered: A rapid Covid test in New York sells…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 10P

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For each of the determinants of demand in Equation 2.1, identify an example illustrating the effect on the demand for hybrid gasoline-electric vehicles such as the Toyota Prius. Then do the same for each of the determinants of supply in Equation 2.2. In each instance, would equilibrium market price increase or decrease? Consider substitutes such as plug-in hybrids, the Nissan Leaf and Chevy Volt, and complements such as gasoline and lithium ion laptop computer batteries.
What happens when the wearing of scarves becomes MORE POPULAR (MORE FASHIONABLE) among consumers? What is the effect of this scenario on the EQUILIBRIUM PRICE of scarves? A. Equilibrium price will DECREASE as a result of this scenario. B. Equilibrium price will INCREASE as a result of this scenario. C. Equilibrium price will REMAIN THE SAME as a result of this scenario. What is the effect of this scenario on the EQUILIBRIUM QUANTITY of scarves? A. Equilibrium QUANTITY will DECREASE as a result of this scenario. B. Equilibrium QUANTITY will INCREASE as a result of this scenario. C. Equilibrium QUANTITY will REMAIN THE SAME as a result of this scenario.
Consider the market for gasoline that is initially in equilibrium. Suppose that the Middle East, a major supplier of petroleum used to produce gasoline, erupts into war. At the same time suppose that the price of electric vehicles falls. Given these changes and holding everything else constant, what happens to the equilibrium price and quantity in the market for gasoline relative to the initial equilibrium price and quantity in the market a. The equilibrium price may increase, decrease or remain the same while the equilibrium quantity will decrease b. The equilibrium price may increase, decrease or remain the same while the equilibrium quantity willincrease c. The equilibrium price will increase while the equilibrium quantity may increase, decrease or remain the same d. The equilibrium price will decrease while the equilibrium quantity may increase, decrease or remain the sam
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Volkswagen’s reputation among car buyers was shattered when the public discovered it was cheating on its emissions checks. What happened to equilibrium prices and quantities in the market for Audis, which is widely known to be a good substitute for Volkswagens also created in Germany? The equilibrium price Group of answer choices is ambiguous and the equilibrium quantity increases. increases and the equilibrium quantity increases. decreases and the equilibrium quantity increases. increases and the equilibrium quantity decreases.
Some have argued that higher cigarette prices do not deter smoking. While there are many arguments both for and against this view, some find the following argument to be the most persuasive of all: “The laws of supply and demand indicate that higher prices are ineffective in reducing smoking. In particular, higher cigarette prices will reduce the demand for cigarettes. This reduction in demand will push the equilibrium price back down to its original level. Since the equilibrium price will remain unchanged, smokers will consume the same number of cigarettes.”Do you agree or disagree with this view? Disagree - the reduction in demand will push the equilibrium price below its original level. Disagree - this confuses a change in demand with a change in quantity demanded. Agree - the price increase will ultimately leave cigarette consumption unchanged. Disagree - higher cigarette prices will actually increase the demand for cigarettes.
Assume that you are told that because of some changes, the equilibrium price increased but it is unknown if the equilibrium quantity increased, remained the same, or decreased. Which of the following would be consistent with this outcome?a. There was a decrease in input costs and consumers expected lower income.b. Consumers expected a lower price and firms expected a higher price.c. There was a decrease in income (the good is inferior) and a decrease in the number of firms.d. There was a positive change in consumer tastes and an increase in productivity. When demand is _______ consumers are _______ to price changes and the price elasticity of demand is _______.a. elastic, relatively sensitive, greater than one (in absolute value)b. inelastic, completely insensitive, equal to one (in absolute value)c. inelastic, relatively sensitive, less than one (in absolute value)d. unit elastic, hyper-sensitive, equal to zeroe. perfectly elastic, hyper-sensitive, equal to one (in absolute value)…
What happens when Tropical Storm Edna produces heavy rains that destroy a significant portion of the orange crop? What is the effect of this tropical storm on the EQUILIBRIUM PRICE of oranges? A. Equilibrium price will DECREASE as a result of this tropical storm. B. Equilibrium price will INCREASE as a result of this tropical storm. C. Equilibrium price will REMAIN THE SAME as a result of this tropical storm. What is the effect of this tropical storm on the EQUILIBRIUM QUANTITY of oranges? A. Equilibrium QUANTITY will DECREASE as a result of this tropical storm. B. Equilibrium QUANTITY will INCREASE as a result of this tropical storm. C. Equilibrium QUANTITY will REMAIN THE SAME as a result of this tropical storm.
There are about 2500 leather wallets available in a country. When the price of these wallets is raised to $3000, economists believe that people may not be willing to buy them. On the other hand, if the price is decreased to $0, the 2500 leather wallets will be sold out. However, no producers will be willing to sell them at $0. If the price is set to $1000, producers will be willing to sell all 2500 leather wallets. Create the demand and supply equation for the leather wallets based on the given information.
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if the equilibrium quantity is 50 units, show on a raph that the difference between the maximum buying price & minimum selling price is greater at 25 than at 33 units.
There is an increase in the number of adverts highlighting the danger of consuming sugar. Which of the following islikely to occur in the market for sugarless sweets, as a result of this? a. An increase in both the equilibrium price and quantity traded b. A decrease in equilibrium price and an increase in equilibrium quantity traded. c. A decrease in both the equilibrium price and quantity traded. d. An increase in the equilibrium price and a decrease in the equilibrium quantity traded.

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