Que 1:  Show and explain how each of the following will affect the current supply (increase supply or decrease supply ) for bicycle. a.  A rise in wage rates  b.  An increase in the number of sellers of bicycle.  c. A tax placed on the production of bicycle. d. A subsidy placed on the production of bicycle.

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter2: Using Economics To Study Health Issues
Section: Chapter Questions
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Que 1:  Show and explain how each of the following will affect the current supply (increase supply or decrease supply ) for bicycle.

a.  A rise in wage rates 

b.  An increase in the number of sellers of bicycle. 

c. A tax placed on the production of bicycle.

d. A subsidy placed on the production of bicycle. 

Que 2:. Consider the following statements. show and explain whether the demand curve will shift leftward/downward or rightward/upward.

a.  An increase in income(the good under consideration is an inferior good)

b. A rise in the price of a complementary good.

c. A fall in the price of a subtitute good.

d. A rise in the number of buyers. 

 

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