1. What will happen in the market for wine if the price of cheese increases (wine and cheese are complements)? 2. What will happen in the market for brewed coffee if the price of coffee beans increases? 3. What will happen in the market for lobster if the government rises the income tax and lobsters are a normal good? 4. What will happen in the market for tomatoes if a new study is released that shows that pesticides used on tomatoes contain cancer forming agents. 5. A fall in airfares from UK has raised the demand for hotels rooms in St. Vincent. 6. Government grants a $1 subsidy on each bottle of milk produced. 7. Government collects a $2 sales tax on each bottle of rum.
1. What will happen in the market for wine if the price of cheese increases (wine and cheese are complements)? 2. What will happen in the market for brewed coffee if the price of coffee beans increases? 3. What will happen in the market for lobster if the government rises the income tax and lobsters are a normal good? 4. What will happen in the market for tomatoes if a new study is released that shows that pesticides used on tomatoes contain cancer forming agents. 5. A fall in airfares from UK has raised the demand for hotels rooms in St. Vincent. 6. Government grants a $1 subsidy on each bottle of milk produced. 7. Government collects a $2 sales tax on each bottle of rum.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
1. What will happen in the market for wine if the price of cheese increases (wine and
cheese are
complements)?
2. What will happen in the market for brewed coffee if the price of coffee beans
increases?
3. What will happen in the market for lobster if the government rises the income tax
and lobsters are a normal good?
4. What will happen in the market for tomatoes if a new study is released that shows
that pesticides used on tomatoes contain cancer forming agents.
5. A fall in airfares from UK has raised the demand for hotels rooms in St. Vincent.
6. Government grants a $1 subsidy on each bottle of milk produced.
7. Government collects a $2 sales tax on each bottle of rum.
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