If a movie theater ticket is a normal good, what do you suppose would happen to price and quantity during an economic recession? Question 2 options: (highlight correct answer) Price and quantity would both increase Price would increase and quantity decrease Price and quantity would both decrease Price would decrease and quantity increase

If a movie theater ticket is a normal good, what do you suppose would happen to price and quantity during an economic recession? Question 2 options: (highlight correct answer) Price and quantity would both increase Price would increase and quantity decrease Price and quantity would both decrease Price would decrease and quantity increase

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter16: Information, Risk, And Insurance

Section: Chapter Questions

Problem 23P: Using Exercise 16.20, sketch the effects in parts (a) and (b) on a single supply and demand diagram....

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Problem Solving (1) Given the below table, graph the demand and supply curves for flashlights. Make certain to label equilibrium price and equilibrium quantity 1. What is the equilibrium price and equilibrium quantity? 2. Suppose the price is currently at $5. What problem would exist in the economy? What would you expect to happen to price? Show this on your graph. 3.Suppose the price is currently $2. What problem exists in the economy? What would you expect to happen to price? Show this on your graph. Price Quantity Demanded/Month Quantity Supplied/Month $5 6,000 10,000 $4 8,000 8,000 $3 10,000 6,000 $2 12,000 4,000 $1 14,000 2,000 BSTM2001 CHAPTER (3) SLIDE (33)
QUESTION 17 "Supply" is best defined as the relationship between: the quantity supplied and the price people are willing to pay for a good. the current price of a good and the quantity supplied at that price. the price of a good or service and the quantity supplied by producers at each price during a period of time. the cost of producing a good and the price consumers are willing to pay for it. QUESTION 18 Suppose the price of movies seen at a theater rises from $6 to $12. The theater manager observes that the rise in price causes attendance at a given movie to fall from 150 persons to 100 persons. What is the absolute value of arc price elasticity of demand for movies? 0.59 1.2 1.0 0.88
If the economy goes into a recession and incomes fall, what happens in markets? Question 2 options: Prices of normal goods go up because the demand for them increases Prices of all goods go down None of the other answers is correct Prices of inferior goods go up because the demand for them increases
Question: What happens to equilibrium price and quantity in a market when there is an increase in both supply and demand? A) Equilibrium price decreases, equilibrium quantity increases B) Equilibrium price increases, equilibrium quantity decreases C) Equilibrium price and quantity both increase D) Equilibrium price and quantity both decrease
Question 27 Assume new cars are normal goods. What will happen to the equilibrium price of new cars if price of gasoline falls and the price of steel used in cars falls? Price will fall, and the effect on quantity is ambiguous. Quantity will rise, and the effect on price is ambiguous. Quantity will fall, and the effect on price is ambiguous. Price will rise, and the effect on quantity is ambiguous.
Practice with Determinants: SUPPLY Supply 1-4 1. The following headline appeared in the London Times, "England's sheep population nearly destroyed by famine!" How will this affect the supply of wool around the world? Show the shift in supply and name the determinant. "Name the determinant: 2. In an effort to encourage economic growth, the United States government has cut corporate income taxes by 20%. How will this affect firms' ability to supply their products? Show the shift in supply and name the determinant. "Name the determinant:
Using Exercise 16.20, sketch the effects in parts (a) and (b) on a single supply and demand diagram. What prediction would you make about how the improved information alters the equilibrium quantity and price?
Multiple choice Question one3 Carefully explain what is happening in the following market. Indicate the impact , if any on demand, supply,price and quantity. Chose from the following what will happen to each ; increase towards equilibrium, no impact,excess supply, change in price uncertain, decrease equilibrium quantity, increase equilibrium price, change in quantity uncertain, decrease towards equilibrium, decrease equilibrium price, shift outward to right, shift inwards to left , excess demand , increase towards equilibrium. 1a) In Academics year 2020/21 , the university of the west indies mandated that all students must take principles and economics as a core requirement for their major. Concurrently , the university bookshop made their order for the principle and economics text books based on the number of registered students in the last academic year (2019/2020).1b) The price of input for the production of BrandX handbags have increased .Concurrently, taste and preferences has…
Question: A survey indicated that chocolate is Americans' favorite ice cream flavor. For each of the following, indicate the possible effects on demand, supply as well as equilibrium price and quantity of chocolate ice cream. a. A severe drought in the Midwest causes dairy farmers to reduce the number of milk-producing cattle in their herds by a third. These dairy farmers supply cream that is used to manufacture chocolate ice cream. b. A new report by the American Medical Association reveals that chocolate does, in fact, have significant health benefits. c. The discovery of cheaper synthetic vanilla flavoring lowers the price of vanilla ice cream. d. New technology for mixing and freezing ice cream lowers manufacturers' costs of producing chocolate ice cream.
5
Question 1 Suppose that the demand for toy drums is described by the equation QD = 300 - 5p, and supply is QS = 60 + 3p, (1) What are the equilibrium price and quantity? (2) If a decrease in consumer income shifted the demand curve to QD’ = 220 - 5p, how does this change affect the equilibrium price and quantity? Show the solutions using a graph and calculate the numerical answer.
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	Price and quantity would both increase
	Price would increase and quantity decrease
	Price and quantity would both decrease
	Price would decrease and quantity increase