QUESTION 9 Consider the market for Swatch watches, a normal good. If income rises, the equilibrium price will rise, and the equilibrium quantity will fall. O the equilibrium price and quantity will rise. the equilibrium price will fall, and the equilibrium quantity will rise. the equilibrium price and quantity will fall. QUESTION 10 Consider the market for milk. If the cost of feeding dairy cows falls, the supply curve will decrease; and the equilibrium price and quantity both fall. the supply curve will increase; and the equilibrium price and quantity both rise the supply curve will increase; and the equilibrium price falls while the equilibrium quantity increases. O The supply curve will decrease; and the equilibrium price rises while the equilibrium quantity falls.

QUESTION 9 Consider the market for Swatch watches, a normal good. If income rises, the equilibrium price will rise, and the equilibrium quantity will fall. O the equilibrium price and quantity will rise. the equilibrium price will fall, and the equilibrium quantity will rise. the equilibrium price and quantity will fall. QUESTION 10 Consider the market for milk. If the cost of feeding dairy cows falls, the supply curve will decrease; and the equilibrium price and quantity both fall. the supply curve will increase; and the equilibrium price and quantity both rise the supply curve will increase; and the equilibrium price falls while the equilibrium quantity increases. O The supply curve will decrease; and the equilibrium price rises while the equilibrium quantity falls.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Figure 4-3 Price $20 18 16 14 12 10 8 4 2 10 20 30 40 50 60 70 80 90 100 Quantity 2. Refer to the Figure 4-3. If price in this market is currently S14, what would happen? a. Quantity supplied would be 40 and quantity demanded would be 60. b. Quantity supplied would be 60 and quantity demanded would be 40. c. Quantity supplied would be 50 and quantity demanded would be 50. d. Quantity supplied would be 70 and quantity demanded would be 30.
The graph shows the market for concert tickets. Draw a horizontal line at a price at which there is a shortage of concert tickets. Label it Price. Draw an arrow that shows the amount of the shortage. When does a shortage occur? How does the price change to reach equilibrium? A shortage occurs at a given price when The price to reach equilibrium. O A. supply is greater than demand; falls B. the quantity demanded is greater than the quantity supplied; rises OC. demand is greater than supply, rises OD. the quantity supplied is greater than the quantity demanded; falls 600- 500- 400- 300- 200 100- 10- 0 Price (dollars per ticket) Quantity (millions of concert tickets per year) D (6,100) >>> Draw only the objects specified in the question. L C
Question 10
Suppose that a storm hits Antalya and wipes out tomato crop. What effect will this have on the Antalya tomato market? O Market prices wil increase, and the quantity will decrease Market prices will stay the same, and quantity will decrease. Market prices will stay the same, and quantity will rise O Market prices will fall, and quantity will rise O Market prices will fall, and the quantity will decrease
Suppose the market for exercise bikes experiences the following event: The government reduces subsides on exercise equipment. What will be the effect on the equilibrium? O Equilibrium price increases and equilibrium quantity decreases. O Equilibrium price and quantity increase. O Equilibrium price and quantity decrease. O Equilibrium price decreases and equilibrium quantity increases.
I can seem to figure out the last two questions I bolded: Why does the demand curve slope downward? Why does the supply curve slope upward? Given the demand and supply schedules below: Price (dollars per CD) Quantity Demanded (per day) Quantity Supplied (per day) 5.00 300 100 6.00 250 150 7.00 200 200 8.00 150 250 9.00 100 300 What is the market equilibrium? If the price of CD is $6.00, describe the situation in the CD market. Explain how market equilibrium is restored. A rise in incomes increases the quantity of CDs demanded by 100 a day at each price. What is the new equilibrium and how does the market adjust? A rise in the number of recording studios increases the quantity of CDs supplied by 75 a day at each price. People download more music from the Internet and the quantity demanded of CDs decreases by 25 a day at each price. With no change in incomes, what is the new equilibrium and how does the market adjust?
Consider apples and oranges, which we'll assume are substitutes. If the price of oranges falls, we'll see in the market for apples and in the market for oranges. None of the listed options is correct. O a decrease in quantity demanded; an increase in demand a decrease in demand; an increase in quantity demanded a decrease in quantity demanded; a decrease in demand an increase in demand; a decrease in quantity demanded.
Q. 6 The following graph shows the demand and supply for the grape market. _ 32 36 Price 4.5 4 3.5 2.5 N 1.5 12 16 20 24 28 Quantity per period 40 S 44 D Suppose the price of oranges (a substitute) were to decrease, causing the demand for grapefruit to change by 12 kilos. Draw the new demand line and calculate the new market equilibrium price and quantity. i fr it in Montronl
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QUESTION 11 The number of seats available in an arena is fixed at 20,000. The equilibrium price for a ticket to a basketball game at the arena is $75. The equilibrium price for a ticket to the circus at the arena is $25. Which of the following is true? O The demand for each basketball game must be more than the demand for each circus performance. O Basketball games must be more expensive to produce than a circus performance. O The supply of circus performances must be less elastic than the supply of basketball games. O The demand for each circus performance must be greater than the demand for each basketball game.
A change in price of a good or service typically causes O a new equilibrium price O a change along the supply curve the supply curve to shift O a decreased demand for that specific good or service.
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