Question

QUESTION 23

1. 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

2. 		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 will not change.

I know the answer is C, The equilibrium quantity will increase and the equilibrium price will not change, but need help with an explanation

QUESTION 24

1. If the cost to produce frozen chicken nuggets decreases at the same time as consumer tastes shift away from frozen chicken nuggets 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
   		The equilibrium price will decrease and the equilibrium quantity will increase.
   		Both the equilibrium quantity and price will increase
   		The equilibrium price will decrease and the equilibrium quantity will not change

I know the answer is D, just need help with an explanation

QUESTION 25

1. If the number of demanders for granite counter tops increases at the same time as the number of suppliers of granite counter tops decreases and the shift in demand is greater than 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 price will increase and the equilibrium quantity will increase.
   		The equilibrium price will decrease and the equilibrium quantity will not change.

I know the answer is B, just need help with an explanation

QUESTION 26

1. TRUE/FALSE. EXPLAIN. A technological advancement in the production of laundry detergent will lead to a decrease in the equilibrium price of laundry detergent and an increase in the equilibrium quantity.

   True

   False

I know the answer is true, just need help with an explanation

Answer 1

23

c beacuse the when demand increases price must rise while if supply increases price must fall. In this situation since change in demand is equal to change in price the effect of increase and decrease in price get cancelled out and price stays at the original level

24

d because when supply increases or demand decreases price falls, however the extent of the increase in supply gets cancelled out by the decrease in demand and thus quantity does not change

25

b because when demand increses price will increase so although supply has decreased the increased price will lead to extension of supply thus quantity will also increse

26

True because there will be a fall in cost of production and thus supply will increse, this will bring down the price. Corresponding to the fall in price there will be extension of demand and thus equilibrium quantity will increase