Suppose demand decreases and supply decreases. Which of the following will happen?Equilibrium price will rise, fall, or stay the same while equilibrium quantity will decrease.Equilibrium price will rise, fall, or stay the same while equilibrium quantity will increaseEquilibrium quantity will rise, fall, or stay the same and equilibrium price will increase.Equilibrium quantity will rise, fall, or stay the same while equilibrium price will decrease.The change in equilibrium price and quantity cannot be determined.

Initially, the demand curve and the supply curve intersect at equilibrium E. it can be shown in the…

Answered: Suppose demand decreases and supply…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In a competitive market, suppose the introduction of a new technology in the production of electric cars makes the manufacturing process significantly cheaper and faster. How would this technological advancement likely affect the market equilibrium price and quantity of electric cars?
How would each event affect the market for COVID-19 vaccines? Does the event cause a change in demand or a change in the quantity demanded? Is the change positive or negative? Or does the event cause a change in supply or a change in the quantity supplied? Is the change positive or negative? Explain the mechanism for the change and what happens to equilibrium price and quantity. a) The vaccine is approved for children under the age of 12. b) The U.S. government provides a subsidy that allows the price of the vaccine to be $0 for everyone. c) Several vaccines pass Phase 3 (large-scale efficacy tests) and are approved by the FDA for full use. d) A truck carrying the Pfizer vaccine has a malfunction and the refrigeration requirements aren’t met, so all the doses go bad. e) School districts and health care facilities add a requirement for getting the vaccine for all employees.
In the table below, fill in the missing blanks to complete the summary of the effects of changes in demand and supply on equilibrium price and quantity. Supply Curve Unchanged Supply Curve Shifts to the Supply Curve Shifts to the Right Left Q unchanged Punchanged Demand Curve Q Q decreases Unchanged P decreases P increases Q increases Q increases Pindeterminant Demand Curve Shifts to Q indeterminant the Right P increases Q decreases P decreases Demand Curve Shifts to the Left P decreases P indeterminant
Suppose that the price of nails goes up. What would we expect to happen in the market for hammers, assuming that nails and hammers are commonly consumed together? Price will increase and quantity will increase. Price will increase but quantity will remain constant. Price will decrease and quantity will decrease. Price will increase and quantity will decrease. Price will decrease and quantity will increase.
Consider the market for Teslas. The price of gasoline decreases and the cost of producing Tesla batteries decrease. How will the market for Teslas respond? a prices will fall and the equilibrium quantity may or may not change. b prices will fall and the equilibrium quantity will decrease. c prices will fall and the equilibrium quantity will increase. d There is not enough information to answer the question
In the market for hats, demand decreases and supply increases. If you know nothing else about happens in the market for hats, what would you predict would happen to the equilibrium price? The equilibrium price decreases The equilibrium price stays the same The equilibrium price increases There is not enough information to determine how the equilibrium price will change
When supply and demand meet at the equilibrium point, then prices in the market will
‌If we observe the price of a good or service rising, then the most likely cause is ‌an increase in demand‌ a temporary surplus a small increase in demand followed by a huge increase in supply an increase in supply
Which of the following events must cause the equilibrium price to fall? Demand increases and supply decreases. Demand and supply both increase. Demand decreases and supply increases. Demand and supply both decrease.
One of the following factors that can best explain why there has been a decline in the equilibrium price and the equilibrium quantity of corn:A) an increase in the demand for corn.B) a decrease in the demand for corn.C) a decrease in the supply of corn.D) an increase in the supply of corn.
Please label which one goes in each box. Everything is in the image below
If E were the old equilibrium in the market for wheat in the figure below, and E' the new one, which of the following could have caused the change? E' (E D' D2 Consumer income rose, causing a supply shift. Bad weather caused a supply shift. Supply and demand both shifted. Consumer income rose, causing a demand shift. All of the above are plausible descriptions. а. b. c. d. e.

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