Chewing gum is considered an inferior good. What would happen to the equilibrium price and quantity of chewing gum if income increased and more firms started producing chewing gum? Equilibrium price will

Q: PlayStation 3 and XBOX 360 are substitutes. If the price of PlayStation 3 increases what will happen…

A: Two goods are substitutes when one of them can be consumed in place of the other good.

Q: Graph the demand for wheat and the supply of wheat. Be sure to label the axes of your graph…

A: The markets tend to work upon the basis of the forces of demand and supply. The demand for goods,…

Q: When British regulators were forced to suspend the license of a flu vaccine plant in Liverpool…

A: The market supply of flu vaccines decreased by 48 million doses that is the market supply of flu…

Q: What effect will each of the following have on the supply of auto tires?

A: A technological advance reduces production cost, so firms increase production. As a result, supply…

Q: Which of the following statements is not true?   a. When price elasticity of demand is very high,…

A: Option A is not true

Q: Following below are four graphs and four market scenarios, each of which would cause either a…

A: Supply curve shows different combinations of price and quantity supplied.

Q: b. During winter the demand for lattes increases. Therefore, for a given supply, a. equilibrium…

A: Demand is defined as the willingness of a consumer to buy something, whereas supply is the total…

Q: What happens in the graph when the price of bottled water rises? What happens when the price of…

A: The given graph shows the supply curve of bottled water in the market. It is an upward sloping curve…

Q: please all answer and explain don't use chatgpt. Consider the market for printers. Explain whether…

A: When the price of printers on the market goes down, the number that are sold usually goes up. This…

Q: Ceteris paribus, if the market demand for a product increases, what will happen to the equilibrium…

A: Let's assume the simple market demand and market supply graph shown below.

Q: If the price of Pepsi were to increase then which of the following would happen? O the demand for…

A: The goods which fulfill the same needs of a consumer are termed as substitute goods.

Q: The following four graphs represent four market scenarios, each of which would cause either a…

A: The supply curve is a graphic representation of the correlation between the cost of a good or…

Q: Demand for Martha’s Mums will be 650 small mum plants if they are priced at $4.25 each but only 150…

A: The demand function mathematically represents the relationship between the quantity demanded of a…

Q: Dairies make low-fat milk from full-cream milk. In the process of making low-fat milk, the dairies…

A: In production the complements are those goods that are jointly produced using a given resource.…

Q: Due to technological advancements,the cost of producing electric cars has decreased…

A: Technological change is critical for a company to attain the best possible working environment. It…

Q: I need help with question 7.

A: The correct option for the above-mentioned question is option (c)

Q: An increase in supply and a decrease in demand occur in a market. What happens to the equilibrium…

A: Any change in the demand and supply would lead both the demand and supply curve to shift leftward or…

Q: Consider the market for the wooden yoyo, if the price of wood increases. Change in demand? Change…

A: In the competitive market of a good, the market forces of demand and supply of a good determine the…

Q: uppose the demand of a product decreases. What will be the effect on the market equilibrium price…

A: The fundamental ideas of economics, supply and demand, explain how the costs and amounts of goods…

Q: Which of the following would cause a shift in the demand curve from point A to point B? OA. An…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…

Q: Suppose the supply curve increases, based on the model of supply and demand explain what happens to…

A: The curve that depicts various quantities of goods and services being demanded of good at various…

Q: In Louisiana, the price of beef recently increased due to the popularity of the Keto diet. Leather…

A: The equilibrium price is the intersection point of the supply curve and the demand curve. Now the…

Q: The number of seats available in an arena is fixed at 20,000. The equilibrium price for a ticket to…

A: The demand and supply are the market forces that help to determine the equilibrium price and…

Price Ceilings and Price Floors

Price Ceilings and Price Floors strategy is used by the Government to control the prices of certain goods and services in the market. This method helps the Government to protect the interests of both buyers and suppliers in difficult economic times.