Suppose the market referred to in the previous problem is suddenly hit by a decrease in tastes and preferences. What will happen to Q in this market in the long run (relative to the initial equilibrium)? a) It will decrease b) It will not only decrease but fall to zero c)It will be unchanged d) It will increase e) It will be affected by what is known as the “Kazarosyan Effect”
Suppose the market referred to in the previous problem is suddenly hit by a decrease in tastes and preferences. What will happen to Q in this market in the long run (relative to the initial equilibrium)? a) It will decrease b) It will not only decrease but fall to zero c)It will be unchanged d) It will increase e) It will be affected by what is known as the “Kazarosyan Effect”
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose the market referred to in the previous problem is suddenly hit by a decrease in tastes and
preferences. What will happen to Q in this market in the long run (relative to the initial equilibrium)?
a) It will decrease
b) It will not only decrease but fall to zero
c)It will be unchanged
d) It will increase
e) It will be affected by what is known as the “Kazarosyan Effect”
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