1. Assume a market for a normal good is currently in equilibrium. If the government increases the taxes that firms must pay, then: Demand will (decrease / increase / not change): Blank 1 Supply will (decrease / increase / not change): Blank 2 Equilibrium price will (decrease / increase / not change): Blank 3 Equilibrium quantity will (decrease / increase / not change): Blank 4
1. Assume a market for a normal good is currently in equilibrium. If the government increases the taxes that firms must pay, then:
Demand will (decrease / increase / not change): Blank 1
Supply will (decrease / increase / not change): Blank 2
2. Assume a market for a normal good is currently in equilibrium. If consumers's incomes decrease, then:
Demand will (decrease / increase / not change): Blank 1
Supply will (decrease / increase / not change): Blank 2
Equilibrium price will (decrease / increase / not change): Blank 3
Equilibrium quantity will (decrease / increase / not change): Blank 4
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