Question 3 If the price of bananas decreases, then: OA. The demand for apples increases, raising the equilibrium price and quality of apples. B. The demand for apples increases, raising the equilibrium price and quantity of apples. OC. The demand for apples decreases, raising the equilibrium price and quantity of apples. OD. The demand for apples decreases, lowering the equilibrium price of apples but raising the equilibrium quantity. OE. The demand for apples decreases, lowering the equilibrium price and quantity of apples.

Question 3 If the price of bananas decreases, then: OA. The demand for apples increases, raising the equilibrium price and quality of apples. B. The demand for apples increases, raising the equilibrium price and quantity of apples. OC. The demand for apples decreases, raising the equilibrium price and quantity of apples. OD. The demand for apples decreases, lowering the equilibrium price of apples but raising the equilibrium quantity. OE. The demand for apples decreases, lowering the equilibrium price and quantity of apples.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 8PA

See similar textbooks

Similar questions

Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. In each case, state how the event will affect the supply and demand diagram. Create a sketch of the diagram if necessary. Cars are becoming more fuel efficient, and therefore get more miles to the gallon. The winter is exceptionally cold. A major discovery of new oil is made off the coast of Norway. The economies of some major oil-using nations, like Japan, slow down. A war in the Middle East disrupts oil-pumping schedules. Landlords install additional insulation in buildings. The price of solar energy falls dramatically. Chemical companies invent a new, popular kind of plastic made from oil.
Explain why the following statement is false: In the goods market, no seller would be willing to sell for less than the equilibrium price.
Review Figure 3.4. Suppose the price of gasoline is 1.60 per gallon. Is the quantity demanded higher or lower than at the equilibrium price of 1.40 per gallon? What about the quantity supplied? Is there a shortage or a surplus in the market? If so, how much? Figure 3.4 Demand and Supply of Gasoline
As a general rule, is it safe to assume that a change in the price of a good will always have its most significant impact on the quantity demanded of that good, rather than on the quantity demanded of miller goods? Explain.