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Evaluate the set of events below. Determine how the events will impact their respective markets. a.In...

Evaluate the set of events below. Determine how the events will impact their respective markets.

a.In the market for dairy milk. Consumer preferences shift away from dairy milk toward alternatives.

     The effect of the event will be a(n) (increase/decrease) in (demand/supply).

     As a result, the equilibrium price will (increase/decrease) and the equilibrium quantity will (increase/decrease).

b. In the market for name brand clothing. Incomes in the United States increase.

     The effect of the event will be a(n) (increase/decrease) in (demand/supply).

     As a result, the equilibrium price will (increase/decrease) and the equilibrium quantity will (increase/decrease).

c. In the market for pizza. The price of hamburgers decreases.

     The effect of the event will be a(n) (increase/decrease) in (demand/supply) .

     As a result, the equilibrium price will (increase/decrease) and the equilibrium quantity will (increase/decrease).

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Answer #1

a.In the market for dairy milk. Consumer preferences shift away from dairy milk toward alternatives.

     The effect of the event will be a decrease in demand

     As a result, the equilibrium price will decrease and the equilibrium quantity will decrease.

b. In the market for name brand clothing. Incomes in the United States increase.

     The effect of the event will be an increase in demand.

     As a result, the equilibrium price will increase and the equilibrium quantity will increase.

c. In the market for pizza. The price of hamburgers decreases.

     The effect of the event will be a decrease in demand of pizza and increase the demand of hamburger.

     As a result, the equilibrium price will decrease of pizza and increase of hamburger and the equilibrium quantity will decrease of pizza and increase of hamburger.

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