Due to Covid-19, meatpackers are facing substantially higher costs and people are panic buying meat. As a result, we can expect (at least temporarily) Lower prices and no change in quantity Higher prices and an uncertain change in quantity Higher prices and a certain increase in quantity Higher prices and a certain decrease in quantity
a)
Due to Covid-19, meatpackers are facing substantially higher costs and people are panic buying meat. As a result, we can expect (at least temporarily)
Lower prices and no change in quantity
Higher prices and an uncertain change in quantity
Higher prices and a certain increase in quantity
Higher prices and a certain decrease in quantity
b)
If, against the request of the US, Saudi Arabia decides to further increase the supply of crude oil to the world market, we would expect as a result that (all else equal) the
Equilibrium price of crude oil will increase, and the equilibrium quantity will decrease
Equilibrium price and quantity of crude oil will increase
Equilibrium price and quantity of crude oil will decrease
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