Shoes are considered to be a normal good. What would happen to the equilibrium price and equilibrium quantity of shoes if income increases and the cost of labor to produce shoes increases? The equilibrium price will go down and equilibrium quantity will be indeterminate. O The equilibrium price will be indeterminate and equilibrium quantity will go up. The equilibrium price will be indeterminate and equilibrium quantity will go down. The equilibrium price will go up and equilibrium quantity will go up.

Shoes are considered to be a normal good. What would happen to the equilibrium price and equilibrium quantity of shoes if income increases and the cost of labor to produce shoes increases? The equilibrium price will go down and equilibrium quantity will be indeterminate. O The equilibrium price will be indeterminate and equilibrium quantity will go up. The equilibrium price will be indeterminate and equilibrium quantity will go down. The equilibrium price will go up and equilibrium quantity will go up.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

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
Why is the supply curve upward sloping for a particular good? Higher prices of the good make the good less profitable O Higher prices of the good incentivize firms to produce more of the good Higher prices of the good increase wages Higher prices of the good increase the demand for the good
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.
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.
Question 23 A new car is typically considered to be a normal good. What would happen to the equilibrium price and quantity of new cars if there is a recession where many people lose their jobs? The equilibrium price would fall and the equilibrium quantity would rise as demand shifts to the right. There would be no change to the equilibrium price or quantity. O The equilibrium price would rise and the equilibrium price would fall as demand shifts to the left. The equilibrium price and quantity would both fall as demand shifts to the left. O The equilibrium price and quantity would both rise as demand shifts to the right.
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
The price of cereal, a complement good, has decreased. At the same time, a new and improved pasteurization process makes milk production more efficient. Given these two effects, what can we say about the equilibrium price and quantity of milk? O Equilibrium quantity will increase; the effect on price is ambiguous. Equilibrium price will increase; the effect on quantity is ambiguous. O Equilibrium price will decrease; the effect on quantity is ambiguous. O Equilibrium quantity will decrease, equilibrium price will increase.
Which of the following events would definitely cause a decrease in the equilibrium quantity of cotton shirts (wool shirts are considered a substitute for cotton shirts, and raw cotton is an input in the cotton shirts production)? Select one: Ⓒa. a decrease in the price of wool shirts and an increase in the price of raw cotton O b. an increase in the price of wool shirts and a decrease in the price of raw cotton O c. an increase in the price of wool shirts and an increase in the price of raw cotton O d. a decrease in the price of wool shirts and a decrease in the price of raw cotton Clear my choice
O Point C to Point Di O Point A to Point B Supply 1 Pappy O Point D to Point A O Point A to Point D Ded Dond) The figure above represents the market for orange juice. There is an announcement by the American Heart Association that orange juice is good for your heart. Which of the following would better illustrate the effect in the market for orange juice of such announcement: Da
Suppose an economic boom causes incomes toincrease. Explain what will happen to the demandand supply of phones, and predict the direction ofthe change in the equilibrium price and quantity
Help
Which of the following might result in a rise in the equilibrium price of chewing gum? O Chewing gum is a normal good and consumers' incomes fall O Chewing gum is an inferior good and consumers' incomes rise O The price of artificial sweetener used in the production of chewing gum rises O Chewing gum and bubble gum are substitute goods for each other and the price of bubble gum falls