28 A rise in the price of a substitute in production for a good leads toO A. no change in either the supply or the quantity supplied of the good.O B. a decrease in the quantity of that good supplied.C. no change in the supply of that good; instead there is a change in the quantity supplied.O D. a decrease in the supply of that good.O E. an increase in the supply of that good.Cliok to select your answer.O O C

An increase in the price of a substitute good causes a decrease in supply and a leftward shift of…

A rise in the price of a substitute in production for a good leads to A. no change in either the supply or the quantity supplied of the good. B. a decrease in the quantity of that good supplied. O C. no change in the supply of that good; instead there is a change in the quantity supplied. D. a decrease in the supply of that good. O E. an increase in the supply of that good. O O O O

A rise in the price of a substitute in production for a good leads to A. no change in either the supply or the quantity supplied of the good. B. a decrease in the quantity of that good supplied. O C. no change in the supply of that good; instead there is a change in the quantity supplied. D. a decrease in the supply of that good. O E. an increase in the supply of that good. O O O O

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 1SCQ: Review Figure 3.4. Suppose the price of gasoline is 1.60 per gallon. Is the quantity demanded higher...

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Similar questions

As a general rule, is it safe to assume that a change in the price of a good will always have its most significant impact on the quantity demanded of that good, rather than on the quantity demanded of miller goods? Explain.
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Suppose the cross-price elasticity of apples with respect to the price of oranges is 0.4, and the price of oranges falls by 3. What will happen to the demand for apples?
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If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded of that product, will another 10 decrease in the price cause another 3 increase (no more and no less) in quantity demanded?
Review Figure 3.4. Suppose the price of gasoline is 1.60 per gallon. Is the quantity demanded higher or lower than at the equilibrium price of 1.40 per gallon? What about the quantity supplied? Is there a shortage or a surplus in the market? If so, how much? Figure 3.4 Demand and Supply of Gasoline
Using the midpoint formula for calculating the elasticity of supply, if the price of a good rose from $95 to $105, what would be the elasticity of supply if the quantity supplied changed from a. 38 to 42? b. 78 to 82? c. 54 to 66?
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Many changes are affecting the market for oil. Predict how each of the following events will affect the equilibrium price and quantity in the market for oil. In each case, state how the event will affect the supply and demand diagram. Create a sketch of the diagram if necessary. Cars are becoming more fuel efficient, and therefore get more miles to the gallon. The winter is exceptionally cold. A major discovery of new oil is made off the coast of Norway. The economies of some major oil-using nations, like Japan, slow down. A war in the Middle East disrupts oil-pumping schedules. Landlords install additional insulation in buildings. The price of solar energy falls dramatically. Chemical companies invent a new, popular kind of plastic made from oil.