Question

Suppose there are less students graduating from high school today than in previous years. What will...

  1. Suppose there are less students graduating from high school today than in previous years. What will happen to the equilibrium price and quantity of high school graduation caps and gowns?
    A) Quantity and price increase
    B) Quantity and price decrease
    C) quantity increases, but price decreases
    D) Quantity decreases, but price increases
  2. A decrease in the price of leather will:
    A) decrease equilibrium price and increase equilibrium quantity of shoes.
    B) increase both the equilibrium price and equilibrium quantity of shoes.
    C) decrease both the equilibrium price and equilibrium quantity of shoes.
    D) increase equilibrium price and decrease equilibrium quantity of shoes.
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1. Because now there are less students graduating from high school today than in previous years. This means that the demand for school graduation caps and gowns would decrease. Therefore, the demand curve would shift to the left. As a result of this, the equilibrium quantity and price of graduation caps and gowns decrease. Hence, option(B) is correct.

2. Leather is used in shoes production . Therefore,a decrease in the price of leather will increase the supply of shoes.Supply curve would shift to the right. As a result of this, there will decrease in equilibrium price and increase in equilibrium quantity of shoes.Hence, option(A) is correct.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose pasta salad is a normal good. What will happen if the price of pasta (a...
Suppose pasta salad is a normal good. What will happen if the price of pasta (a major ingredient in pasta salad) increases and income also increases? Choose one: A. The equilibrium quantity and equilibrium price of pasta salad will increase. B. The equilibrium quantity of pasta salad will decrease, and the equilibrium price of pasta salad could either increase or decrease. C. The equilibrium quantity of pasta salad could either increase or decrease, and the equilibrium price of pasta salad...
Can anyone answer this micro econ question? If the demand for a good is elastic and...
Can anyone answer this micro econ question? If the demand for a good is elastic and supply increases in the market, a. the equilibrium price will increase by less than the equilibrium quantity decreases b. the equilibrium price will decrease by less than the equilibrium quantity increases. c. the equilibrium price will decrease by more than the equilibrium quantity increases. d. the equilibrium price will increase by more than the equilibrium quantity decreases.
1-As we move up the demand curve, the price elasticity of demand * A) increases B)...
1-As we move up the demand curve, the price elasticity of demand * A) increases B) decreases C) becomes unitary D) does not change 2-If the price of lemonade increases relative to the price of grape juice, the demand for: * A) grape juice will decrease. B) grape juice will increase. C) lemonade will decrease. D) lemonade will increase. 3-An increase in price will result in no change in total revenue if: * A) the percentage change in price is...
1. A price floor of 89 cents per bushel of cranberries was recently increased to $1.00...
1. A price floor of 89 cents per bushel of cranberries was recently increased to $1.00 per bushel. Before the increase, the market price of cranberries was 89 cents. What will happen to the market price in the market? The market price will ______________. ​[The next question asks about the quantity sold.] a not change b increase c decrease d One cannot tell. 2. If a city places a tax on a good, what will happen to the consumer surplus...
You are the manager of a company that produces and sells bacon. The market for bacon...
You are the manager of a company that produces and sells bacon. The market for bacon was in equilibrium. Recently, however, the prices of both eggs and pig feed have increased. Which of the following answers best explains how the market for bacon will be impacted by these recent trends? a. Supply and demand increase. As a result, the equilibrium price of bacon increases. b. Supply decreases and demand increases. As a result, the equilibrium quantity of bacon decreases. c....
Wool and cotton can both be used to manufacture clothing in the garment industry. Suppose that...
Wool and cotton can both be used to manufacture clothing in the garment industry. Suppose that bad weather destroys cotton crops at the same time that the price of wool increases significantly. What is likely to be the impact on the market for cotton? a. a decrease in both the equilibrium price and the quantity sold b. an increase in the equilibrium price and a decrease in the quantity sold c. an increase in both the equilibrium price and the...
Hot dogs and hotdog buns are compliment goods. Suppose the price of hot dogs increases, what...
Hot dogs and hotdog buns are compliment goods. Suppose the price of hot dogs increases, what impact does this have on the Equilibrium Price and Quantity in the market for hot dog buns? Select one: a. There is no impact on the market for hot dog buns b. Price will increase, Quantity will increase c. Price will decrease, Quantity will increase d. Price will decrease, Quantity will decrease e. Price will increase, Quantity will decrease
Results from previous studies showed that 79% of all high school seniors from a certain city...
Results from previous studies showed that 79% of all high school seniors from a certain city plan to attend college after graduation. A random sample of 200 high school seniors from this city showed that 162 plan to attend college. Does this indicate that the proportion has increased from that of previous studies? Test at a 5% level of significance. a. (2 pts.) State the Null and Alternate Hypotheses for this study. b. (2 pts.) Determine the appropriate test statistic...
Suppose that demand for a good increases and, at the same time, supply of the good...
Suppose that demand for a good increases and, at the same time, supply of the good decreases. What would happen in the market for the good? a. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. b. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. c. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. d. Equilibrium price would increase, but the impact on equilibrium quantity would...
Two events occur simultaneously in the market for California wine: Event 1: The price of glass...
Two events occur simultaneously in the market for California wine: Event 1: The price of glass wine bottles falls because strict government regulations on anti-shatter glass containers are abolished by Congress. Event 2: The price of cheese increases. Using demand and supply analysis predict what is likely to happen to the equilibrium price of California wine and the equilibrium quantity of California wine. a) Demand for California wine increases and supply of California wine increases, and the impact of these...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT