QUESTION 35 Suppose that the price of a substitute good falls and there are new regulations that make production more expensive. This would lead to a. A decrease in quantity and an ambiguous effect on price Ob. An increase in price and an ambiguous effect on quantity c. An increase in quantity and an ambiguous effect on price d. An decrease in price and an ambiguous effect on quantity
QUESTION 35 Suppose that the price of a substitute good falls and there are new regulations that make production more expensive. This would lead to a. A decrease in quantity and an ambiguous effect on price Ob. An increase in price and an ambiguous effect on quantity c. An increase in quantity and an ambiguous effect on price d. An decrease in price and an ambiguous effect on quantity
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:C. An increase in income
d. An increase in the price of sugar (which is used to make lemonade)
QUESTION 35
Suppose that the price of a substitute good falls and there are new regulations that make production more expensive. This would lead to
a. A decrease in quantity and an ambiguous effect on price
Ob. An increase in price and an ambiguous effect on quantity
c. An increase in quantity and an ambiguous effect on price
d. An decrease in price and an ambiguous effect on quantity
QUESTION 36
A rightward shift in the demand curve for tennis balls could be caused by
a. a fall in the price of tennis rackets.
b. a fall in income, assuming tennis balls are a normal good.
C. a fall in the price of tennis balls.
d. a rise in the price of tennis lessons.
QUESTION 37
An early frost in the vineyards of Napa Valley would cause a(n)
a. decrease in the demand for wine, decreasing price.
b. increase in the demand for wine, increasing price.
c. decrease in the supply of wine, increasing price.
d. increase in the supply of wine, decreasing price.
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