usic compact discs if musicians royalties, compact disc players become cheaper, more firms start producing music compac lovers experience an increase in income? Select one: O a. Equilibrium price would increase, but the impact on equilibrium quantity would be an O b. Equilibrium price would decrease, but the impact on equilibrium quantity would be a O c. Equilibrium price increases and equilibrium quantity decreases O d. Equilibrium quantity would decrease, but the impact on equilibrium price would be ar O e. Equilibrium quantity would increase, but the impact on equilibrium price would be am

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower
royalties, compact disc players become cheaper, more firms start producing music compact discs, and music
lovers experience an increase in income?
Select one:
O a. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.
O b. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
O c. Equilibrium price increases and equilibrium quantity decreases
O d. Equilibrium quantity-would decrease, but the impact on equilibrium price would be ambiguous.
Oe. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
Transcribed Image Text:What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start producing music compact discs, and music lovers experience an increase in income? Select one: O a. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. O b. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. O c. Equilibrium price increases and equilibrium quantity decreases O d. Equilibrium quantity-would decrease, but the impact on equilibrium price would be ambiguous. Oe. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
The table below shows the willingness to pay for a good for four consumers in a market
Consumer Willingness to Pay
$80
$65
$45
$30
If the price of the good is $50, what is the total consumer surplus?
Select one:
Oa.
O a. $20
Ob. $45
Oc. $65
5
Od. $25
ABc
Transcribed Image Text:The table below shows the willingness to pay for a good for four consumers in a market Consumer Willingness to Pay $80 $65 $45 $30 If the price of the good is $50, what is the total consumer surplus? Select one: Oa. O a. $20 Ob. $45 Oc. $65 5 Od. $25 ABc
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