An increase in supply... ( a) indicates that more is supplied at higher prices. b) indicates that more is supplied at lower prices. c) indicates that more is supplied at all prices. d) is illustrated by an upward shift of the supply curve.
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- Equilibrium is achieved when quantity demanded intersect with quantity supplied. Assume aproduct “Mobile Phone” for which supply and demand shifts. You are required to prepare graphs of each situation given below?d. Decrease in the price of a complement for Mobile Phone.e. Increase in the cost of production of Mobile Phone.f. Decrease in the cost of production of Mobile Phone.Equilibrium is achieved when quantity demanded intersect with quantity supplied. Assume aproduct “Mobile Phone” for which supply and demand shifts. You are required to prepare graphs of each situation given below?a. Increase in income: Mobile Phone is a normal good.b. Increase in income: Mobile Phone is an inferior good.c. Decrease in the price of a substitute for Mobile Phone.d. Decrease in the price of a complement for Mobile Phone.e. Increase in the cost of production of Mobile Phone.f. Decrease in the cost of production of Mobile Phone.Suppose other things are constant, whenever the price of good A rises, the supply curve of good B will shift leftward. Therefore, good A and good B are complementary. Carefully explain whether the above underlined part is true or false.
- A decline in the price of good A causes the demand curve for good B to shift to the right. We can conclude goods A and B are: complements normal goods inferior goods substitutesshift in demand or supply Suppose the price of muffins decreases. (Assume that people regard donuts and muffins as substitutes) What way would a supply curve shift to the left or to the right? what way would a demand curve shift to the left or to the right? If donuts are a normal good, this will cause the demand for donuts to either increase or decrease?Considering peanut butter and jelly as compliment goods, if demand of peanut butter decreases (hence, the price deacreases), would the demand of jelly decrease because the demand peanut butter decreased or increase because the price of peanut butter deacred? Or does it depend on the elascticity of the two goods?
- Suppose hot dogs and mustard are complements in consumption. An increase in the supply of hot dogs, everything else held constant, will cause the equilibrium price of mustard to _____ and the equilibrium quantity of mustard transacted to _____. A. increase; increase B. decrease; increase C. decrease; decrease D. increase; decreaseAssume there is a decrease in the price of a complement. This will cause the _______ curve to shift to the _______. a. supply, left b. supply, right c. demand, left d. demand, rightSuppose the price of menthol, an ingredient used to produce cough drops, has decreased. If nothing else has changed, the ____ curve has shifted causing the equilibrium price to _____ and equilibrium quantity to _____. Supply, decrrease, increase, demand, increase, decrease
- A consumer buys two goods X and Y. Suppose price of Good X falls. What will be its effect on its demand? Give two reasonsThe following are market demand and supply equations for a perfume product:QD = 70 − 4PQS = 10 + 2Pwhere P is, QD and QS are quantity demanded and supplied of perfume, respectively.A) What is the equilibrium price and quantity? Calculate using the arithmetic method.B) Draw demand and supply curves for prices £0, £4, £6 ... £16.C) Suppose consumers’ income increases and perfume is considered as a normal good. As a result, the new demand equation is QD = 100 − 4P. Find the new equilibrium price and quantity of perfume.Which of the following will not cause a good’s entire demand curve to shift? Group of answer choices: (A) A change in consumers' income. (B) A change in consumers' tastes or desires for the good. (C) A change in the availability and price of substitute goods. (D) A change in consumers' expectations. (E) A change in the current price of the good.
