Please help with 1-5 O Question 1A decrease in today's price of chicken will result in anincrease in the quantity of chicken demanded.increase in the demand for chicken.increase in the supply of chicken.Question 2An increase in today's price of chicken will result in anincrease in the quantity of chicken supplied.increase in the supply of chicken.increase in the quantity of chicken demanded.Question 3A shift of a demand curve to the right, other things being equal, willincrease quantity and decrease price.decrease price and quantity.increase price and quantity.Question 4Other things being equal, a tax that leads to an increase in the cost of production wouldresult in an increase in price.shift supply to the left.Both are correct.Question 5Firms that employ more technology in the production of output willdecrease demand.decrease production cost.

Answered: Question: A decrease in today's price…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please help with 1-5

O Question 1
A decrease in today's price of chicken will result in an
increase in the quantity of chicken demanded.
increase in the demand for chicken.
increase in the supply of chicken.
Question 2
An increase in today's price of chicken will result in an
increase in the quantity of chicken supplied.
increase in the supply of chicken.
increase in the quantity of chicken demanded.
Question 3
A shift of a demand curve to the right, other things being equal, will
increase quantity and decrease price.
decrease price and quantity.
increase price and quantity.
Question 4
Other things being equal, a tax that leads to an increase in the cost of production would
result in an increase in price.
shift supply to the left.
Both are correct.
Question 5
Firms that employ more technology in the production of output will
decrease demand.
decrease production cost.

Expert Solution

Step 1

Demand is the number of consumers who are able and willing to purchase goods at a range of prices over a specific time period. Demand for any thing or service indicates that people want it and are willing and able to pay for it. The law of demand states that if the price of goods and services is high then it leads to a lower quantity demanded and that if the price of goods and services is low then it leads to higher quantity demanded.

Supply is the quantity of a resource that businesses, producers, workers, lenders, or other economic agents are willing and able to offer to the market or to a specific person. The law of supply is a micro-economic principle that asserts, with all other things being equal, that if the cost of an item or service rises, suppliers will offer more of those goods or services, and vice versa.

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