For each of the statements below, select the option that best describes what would happen to the equilibrium price and quantity in the market (noted in italics). Price up, quantity down e. Price down, quantity uncertain Price up, quantity up f. Price up, quantity uncertain Price down, quantity down g. Price uncertain, quantity up Price down, quantity up h. Price uncertain, quantity down ____ 1. Banana consumers experience a decrease in their income (assume bananas are an inferior good). ____ 2. Shoe manufacturers experience an increase in the price of raw materials such
For each of the statements below, select the option that best describes what would happen to the
- Price up, quantity down e. Price down, quantity uncertain
- Price up, quantity up f. Price up, quantity uncertain
- Price down, quantity down g. Price uncertain, quantity up
- Price down, quantity up h. Price uncertain, quantity down
____ 1. Banana consumers experience a decrease in their income (assume bananas are an inferior good).
____ 2. Shoe manufacturers experience an increase in the price of raw materials such as leather and
rubber.
____ 3. U.S. consumers of jelly (to make PB&J sandwiches) witness an increase in the price of peanut butter
caused by an increase in supply.
____ 4. Consumer enthusiasm for vacations increases air travel at the same time jet fuel costs are falling.
____ 5. An increase in wages affects both production costs and demand for running shoes, a normal good.
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