QUESTION 9 Consider the market for Swatch watches, a normal good. If income rises, the equilibrium price will rise, and the equilibrium quantity will fall. O the equilibrium price and quantity will rise. the equilibrium price will fall, and the equilibrium quantity will rise. the equilibrium price and quantity will fall. QUESTION 10 Consider the market for milk. If the cost of feeding dairy cows falls, the supply curve will decrease; and the equilibrium price and quantity both fall. the supply curve will increase; and the equilibrium price and quantity both rise the supply curve will increase; and the equilibrium price falls while the equilibrium quantity increases. O The supply curve will decrease; and the equilibrium price rises while the equilibrium quantity falls.

QUESTION 9 Consider the market for Swatch watches, a normal good. If income rises, the equilibrium price will rise, and the equilibrium quantity will fall. O the equilibrium price and quantity will rise. the equilibrium price will fall, and the equilibrium quantity will rise. the equilibrium price and quantity will fall. QUESTION 10 Consider the market for milk. If the cost of feeding dairy cows falls, the supply curve will decrease; and the equilibrium price and quantity both fall. the supply curve will increase; and the equilibrium price and quantity both rise the supply curve will increase; and the equilibrium price falls while the equilibrium quantity increases. O The supply curve will decrease; and the equilibrium price rises while the equilibrium quantity falls.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter8: Understanding Markets And Industry Changes

Section: Chapter Questions

Problem 2MC

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