What will happen to the equilibrium price and quantity of pens if the price of pencils rises, consumers experience an increase in income, writing in ink becomes fashionable, people expect the price of pens to rise in the near future, the population increases, fewer firms manufacture pens, and the wages of pen-makers increase? Select one: O a. Equilibrium price increases and equilibrium quantity decreases O b. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. O c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. O d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. O e. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.

What will happen to the equilibrium price and quantity of pens if the price of pencils rises, consumers experience an increase in income, writing in ink becomes fashionable, people expect the price of pens to rise in the near future, the population increases, fewer firms manufacture pens, and the wages of pen-makers increase? Select one: O a. Equilibrium price increases and equilibrium quantity decreases O b. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. O c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. O d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. O e. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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