Question

In each of the follow scenarios determine with the correct combination of price change and quantity...

  1. In each of the follow scenarios determine with the correct combination of price change and quantity change. Is the equilibrium price and quantity increasing, remaining, decreasing, or indeterminate. Each question should have an answer for price and one for quantity. Explain your answer!!

        a.    There is an increase in demand and an increase in supply.

        b.    Decrease in demand and decrease in supply

        c.     Increase in demand and a decrease in supply

        d.    Demand falls and supply increases

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer.

a. This will increase the quantity, however the change in price is indeterminant as this would depend upon the ratio of change in demand and supply.

b. This will decrease the quantity, however the change in price is indeterminant as this would depend upon the ratio of change in demand and supply.

c.  This will increase the price, however the change in quantity is indeterminant as this would depend upon the ratio of change in demand and supply.

d.  This will decrease the price, however the change in quantity is indeterminant as this would depend upon the ratio of change in demand and supply.

Please rate up.

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
Exercise 1. Label each of the follow scenarios with the correct combination of price change and...
Exercise 1. Label each of the follow scenarios with the correct combination of price change and quantity change. In some scenarios, it may not be possible from the information given to determine the direction of a particular price change or a particular quantity change. We will symbolize those cases as, respectively, “P?” and “Q?” For each part also draw two graphs to illustrate the changes (one graph will reflect the changes in Demand and the other will reflect the changes...
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...
Table: An Increase in Supply A Decrease in Supply An Increase in Demand A B A...
Table: An Increase in Supply A Decrease in Supply An Increase in Demand A B A Decrease in Demand C D Refer to the Table above: Which combination would produce an increase in equilibrium price and an indeterminate change in equilibrium quantity? Note: Start with a demand and supply curves and identify the initial equilibrium price and quantity. Then, change the demand and supply curves (indicated in the table) proportionally and identify the new equilibrium price and quantity. In some...
Explain how each of the following events affects the market equilibirium quantity and price of jeans....
Explain how each of the following events affects the market equilibirium quantity and price of jeans. Be sure to specify how these events affect the demand or supply curve, if at all. (An example of an answer would be the "supply curve moves down and to the right, increasing the equilbrium quantity and decreasing equilibrium price of jeans") (1) A new technology becomes available that cuts the time it takes to manufacture a pair of jeans by 50% (2) The...
In the market for peaches, we observe both market equilibrium price and quantity increase.  What could have...
In the market for peaches, we observe both market equilibrium price and quantity increase.  What could have caused this change? a.an increase in supply and a decrease in demand b.an increase in demand c.an increase in supply d.a decrease in supply Flag this Question A decrease in the price of inputs into production causes: a.market supply to decrease, driving market equilibrium price down b.market supply to increase, increasing market equilibrium price c.market supply to increase, decreasing market equilibrium price d.quantity supplied...
When there is a decrease in supply, all else held equal, equilibrium price falls, demand increases,...
When there is a decrease in supply, all else held equal, equilibrium price falls, demand increases, and equilibrium quantity increases. equilibrium price falls, demand does not change, and equilibrium quantity increases. equilibrium price rises, quantity demanded decreases, and equilibrium quantity decreases. equilibrium price falls, quantity demanded decreases, and equilibrium quantity decreases. equilibrium price rises, demand does not change, and equilibrium quantity increases.
If demand increases and supply increases: equilibrium price will increase and equilibrium quantity will decrease. equilibrium...
If demand increases and supply increases: equilibrium price will increase and equilibrium quantity will decrease. equilibrium price will be uncertain and equilibrium quantity will decrease. equilibrium price will be uncertain and equilibrium quantity will increase.
Fill in the following table describing each events affect on market supply, demand, price and quantity...
Fill in the following table describing each events affect on market supply, demand, price and quantity in the market for potatoes, a normal good, indicating an increase, decrease or no effect on each variable: (Note: The first one is done for you.) Question Supply Demand Price Quantity 1. Rainfall increases in the market for potatoes Increase No Effect Decrease Increase 2. Number of farmers decreases 3. Consumer’s income increases 4. Price of rice, which is not an alternative good for...
QUESTION 23 If the number of demanders for electric cars increases at the same time as...
QUESTION 23 If the number of demanders for electric cars increases at the same time as the number of suppliers of electric cars increases and the shift in demand is equal to the shift in supply, which of the following is true?AND EXPLAIN Both the equilibrium quantity and price will decrease. Both the equilibrium quantity and price will increase. The equilibrium quantity will increase and the equilibrium price will not change. The equilibrium price will decrease and the equilibrium quantity...
The equilibrium price will fall and the equilibrium quantity might increase, decrease, or stay the same...
The equilibrium price will fall and the equilibrium quantity might increase, decrease, or stay the same when the: demand and the supply of a good both decrease. demand for a good decreases and the supply of it increases. demand and the supply of a good both increase. demand for a good increases and the supply of it decreases.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT