Microeconomics A Contemporary Intro
10th Edition
ISBN: 9781285635101
Author: MCEACHERN
Publisher: Cengage
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If incomes increase and the number of producers of batteries decreases, how will the equilibrium price and equilibrium quantity of batteries change?
The equilibrium price of a battery will ________ and the equilibrium quantity of batteries ________.
A.
fall; might increase, decrease, or not change
B.
fall; will decrease
C.
rise; might increase, decrease, or not change
D.
either rise, fall, or not change; will increase
What are the effects on the equilibrium price and quantity of steel if the wages of steelworkers rise and, simultaneously, the price of aluminum rises?
Assume that the equilibrium price of French fries rises, while the equilibrium quantity falls. The most consistent explanation for this observation is:a. An increase in the price of onion rings (a substitute for French fries).b. A fall in the price of onion rings.c. A rise in the price of potato bread (production-side substitute for French fries)d. A fall in the price of potato bread.Note: the answer is alternative C) and you are asked to argue why it is correct; and further argue why the other alternatives are false or uncertain.
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- llustrate in the below graph the consequences caused by an oversupply (high increase) on supply and a slight decline (small decrease) of demand -What will happen with the price of oil, will increase or decrease? -What about the total quantity of oil production, will increase or decrease?arrow_forwardWith the aid of a diagram, show the effect of the following changes on the equilibrium price, quantity and equilibrium point. Market for Samsung phone: People switch to Huawei. Market for Education: Increase in the price of school fees. Money Market: Increase in the lending rate. Market for DIAPERS: Increase in the number of pregnant womenarrow_forwardWhat will happen to the equilibrium price and quantity of pens if the price of pencils rises, consumers experience an increase in income, writing in ink becomes fashionable, people expect the price of pens to rise in the near future, the population increases, fewer firms manufacture pens, and the wages of pen-makers increase? a. Equilibrium quantity would decrase, but the impact on equilibruim price would be ambiguous. b. Equilibruim price would increase, but the impact on equilibruim quantity would be ambigious. c. Equilibrium quantity would incrase, but the impact on equilibruim would be ambiguous d. Equilibrium price increases and equilibruim quantity decreases e. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.arrow_forward
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