What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties,compact disc players become cheaper, more firms start producing music compact discs, and music lovers experiencean increase in income?Select one:O a. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.O b. Equilibrium price increases and equilibrium quantity decreasesO c. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.O d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.O e. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.NexageIMG_7969.jpegJPED

Supply & demand in economic matters, connection between the quantity of a goods that makers wish…

Answered: ct one: a. Equilibrium price would…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 10PA

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Suppose there is a soda tax to curb obesity. What should a reduction in the soda tax do to the supply of sodas and to the equilibrium price and quantity? Canyon show this graphically? Hint: Assume that the soda tax is collected from the sellers.
What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start producing music compact discs, and music lovers experie an increase in income? Select one: O a. Equilibrium price increases and equilibrium quantity decreases O b. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. O c. Equilibrium price would decreaşe, but the impact on eguilibrium quantity would be ambiguous. O d. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. e. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
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Suppose an economic boom causes incomes to increase and, at the same time, drives up wages for the sales representatives who work for cell phone companies. Assume that smartphones are a normal good. This will cause the: O price of cell phones and the equilibrium quantity to rise. O price of cell phones to rise, but the change in the equilibrium quantity is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply. O price of cell phones and the equilibrium quantity to fall. O quantity of cell phones to rise, but the change in the equilibrium price is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply.
Assume that both the demand curve and the supply curve for coffee shift to the right but the demand curve shifts more than the supply curve. As a result O the equilibrium price of coffee will decrease; the equilibrium quantity may increase or decrease. O the equilibrium price of coffee may increase or decrease; the equilibrium quantity will increase. O both the equilibrium price and quantity of coffee will increase. O the equilibrium price of coffee will increase; the equilibrium quantity may increase or decrease.
A large disruption in the world oil supply increases the price of oil for a long while. What will happen to the price and quantity of Hybrid cars in the U.S.? O Equilibrium price rises, equilibrium quantity rises. O Equilibrium price falls, equilibrium quantity rises. Equilibrium price rises, equilibrium quantity falls O Equilibrium price rises, equilibrium quantity falls
Several advertisements announce that the price of hand sanitizer will be decreasing next month. At the same time, the price of rubbing alcohol, an ingredient used to make hand sanitizer, has increased. Given these two effects, what can we say about the current equilibrium price and quantity of hand sanitizer? O Equilibrium price will decrease; the effect on quantity is ambiguous. Equilibrium price will increase, equilibrium quantity will decrease. O Equilibrium quantity will decrease; the effect on price is ambiguous. O Equilibrium quantity will increase; the effect on price is ambiguous.
Suppose that California wildfires destroy one-third of the grape crop in the state. What would be the expected effect on the market for raisins? O increase in equilibrium price, increase in equilibrium quantity O decrease in equilibrium price, increase in equilibrium quantity decrease in equilibrium price, decrease in equilibrium quantity no change in the market for raisins increase in equilibrium price, decrease in equilibrium quanttiy
les of Macroeconomics - Spring21 Which of the following statements is CORRECT? Select one: O a. A change in the quantity demanded means a shift in the demand curve. O b. Achange in demand means a movement along the demand curve. O c. Achange in demand and change in quantity demanded means the same thing. O d. Achange in demand means a shift in the demand curve while change in the quantity demanded means a movement along the demand curve. NEXT PAGE
Suppose that the incomes of buyers in a particular market for an inferior good increase and there is also an increase in input prices. What would we expect to occur in this market? Select one: O a. The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous. O b. The equilibrium price would decrease;but the impact on the amount sold in the market would be ambiguous. out Oc Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. O d. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous
Several advertisements announce that the price of hand sanitizer will be decreasing next month. At the same time, the price of rubbing alcohol, an ingredient used to make hand sanitizer has decreased. Given these two effects, what can we say about the current equilibrium price and quantity of hand sanitizer? → a. Equilibrium price will increase, equilibrium quantity will decrease. O b. Equilibrium quantity will decrease; the effect on price is ambiguous. O c. Equilibrium quantity will increase; the effect on price is ambiguous. O d. Equilibrium price will decrease; the effect on quantity is ambiguous.
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