d. Suppose there is an increase in consumers' incomes. In the market for automobiles (a normal good), does this event cause an increase in demand or an increase in quantity demanded? Does this cause an increase in supply or an increase in quantity supplied? (Explain. NB: Explanation must not be more than half a page.)
d. Suppose there is an increase in consumers' incomes. In the market for automobiles
(a normal good), does this event cause an increase in
demanded? Does this cause an increase in supply or an increase in quantity supplied?
(Explain. NB: Explanation must not be more than half a page.)
e. Suppose there is an advance in the technology employed to produce automobiles. In
the market for automobiles, does this event cause an increase in supply or an increase
in the quantity supplied? Does this cause an increase in demand or an increase in the
quantity demanded? Explain NB: Explanation must not be more than half a page.
f. The demand and supply functions for two related commodities A and B in two different
markets are defined below:
QdA= 410-5PA-2PB QdB= 295-PA-3PB
QsA= -60+3PA QsB= -120+2PB
i. Find the equilibrium conditions in the two markets
ii. How are goods A and B related? Explain your.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
