6. Beer and Wine are substitutes, favorable weather in California has produced a good harvest grapes ( used to produce wine) What impact does this have on the equilibrium price and quantity? a. Price increases, quantity decreases b. Price decreases, quantity decreases c. Price decreases, and quantity Is ambiguous d. Price is ambiguous, and quantity decreases

6. Beer and Wine are substitutes, favorable weather in California has produced a good harvest grapes ( used to produce wine) What impact does this have on the equilibrium price and quantity? a. Price increases, quantity decreases b. Price decreases, quantity decreases c. Price decreases, and quantity Is ambiguous d. Price is ambiguous, and quantity decreases

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 8QR

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Similar questions

Explain why the following statement is false: In the goods market, no seller would be willing to sell for less than the equilibrium price.
2. In a supply and demand diagram, draw the shift of the demand curve for hamburgers in your hometown due to the following events. In each case, show the effect on equilibrium price and quantity. a. The price of tacos increases. b. All hamburger sellers raise the price of their french fries. c. Income falls in town. Assume that hamburgers are a normal good for most people. d. Income falls in town. Assume that hamburgers are an inferior good for most people. e. Hot dog stands cut the price of hot dogs.
What would happen to the equilibrium price and quantity of macaroni and cheese if consumers' income fall and macaroni and cheese is an inferior good? a. both the equilibrium price and quantity would increase b. both the equilibrium price and quantity would decrease c. the equilibrium price would increase, and the equilibrium quantity would decrease. d. the equilibrium price would decrease, and the equilibrium quantity would increae.
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1. Consumers perceive coffee and tea as substitutes.How would a decrease in the supply of coffee affect the market for tea? Increasing the supply for tea, ultimately increasing the price of tea as well Decreasing the demand for tea, ultimately decreasing the price of tea as well. Increasing the demand for tea, ultimately increasing the price of tea as well Decreasing the supply for tea, ultimately decreasing the price of tea as well
Q21.
If milk is a normal good, then a decrease in consumers’ income will definitely cause A a decrease in the demand for milk.B an increase in the demand for milk.C an increase in the supply of milk.D a decrease in the supply of milk.E an increase in the demand and supply of milk.
10. What factors can change demand? What factors can change quantity demanded? 11. When a person goes to the grocery store to buy food, there is no auctioneer calling out prices for bread su other items. Therefore, supply and demand cannot be operative. Do you agree or disagree? Explain vour e, milk, 12. The price of a given-quality personal computer is lower today than it was five years ago. Is this necessarily the resuke of a lower demand for computers? Explain your answer. 13. What is the effect on equilibrium price and quantity of the following? a. A decrease in demand that is greater than the increase in supply b. An increase in supply c. A decrease in supply that is greater than the increase in demand d. A decrease in demand 14. At equilibrium quantity, what is the relationship between the maximum buying price and the minimum selling price? 15. If the price paid is Php40 and the consumers' surplus is Php4, then what is the maximum buying price? If the minimum selling price is…
1. If the price of tacos increase from $2 to $3 then a. demand will increase b. demand will decrease c. quantity demanded will increase d. quantity demanded will decrease 2. Consumer income increases (assume tacos are a normal good) a. demand will increase b. demand will decrease C. quantity demanded will increase d. quantity demanded will decrease 3.. The price of burritos which is a substitute for tacos decreases, then the tacos' a. demand will increase b. demand will decrease C. quantity demanded will increase quantity demanded will decrease 4. If the price of tacos increase from $2 to $3 then a. supply will increase b. supply will decrease c. quantity supplied will increase quantity supplied will decrease 5. The cost of the beef used to make the tacos increases a. supply will increase b. supply will decrease c. quantity supplied increase d. quantity supplied decrease
1. When demand for a good shifts outward (and supply remains fixed), what happens in equilibrium? A. price increase; quantity sold increases B. price decrease; quantity sold increases C. price increase; quantity sold decreases D. price decrease; quantity sold decreases
a. Do you agree with the following statements? Explain your answers. i. The price of butter rises, causing the demand for another good to fall. This implies that the goods are substitutes. ii. During the pandemic, incomes fell for many Bahamians this change would likely lead to a decrease in the prices of both normal and inferior goods. iii. If the demand and supply of lobster increases at the same time price will rise. iv. The price of milk falls. This causes an increase in the price of good cheese. Therefore, milk and cheese are complements.
Suppose the national institutes of health publishes a study finding that coffee drinking reduces the probability of getting colon cancer 1. How do you image this will affect the market of coffee? 2. Why 3, Which determinant of demand or supply is being affected? 4. How will the change of the equilibrium price and quantity of coffee? Explain your reasoning