Which of the following changes explains why the equilibrium price of a good would decrease and the quantity would increase? A)Increase in supply B)Increase in demand C)Decrease in demand D)Decrease in supply

Which of the following changes explains why the equilibrium price of a good would decrease and the quantity would increase? A)Increase in supply B)Increase in demand C)Decrease in demand D)Decrease in supply

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Does a change in consumers’ tastes lead to a movement along the demand curve or a shift in the…

Q: Which of the following statement is correct about the Law of Demand? Group of answer choices When…

A: Demand refers to quantity what a consumer is willing to buy. Quantity demanded refers to the…

Q: The demand for a good will change for a number of reasons but the quantity demanded for a good will…

A: Demand refers to the total amount of a particular good or service that consumers are willing and…

Q: What would happen to the equilibrium price and quantity of a normal good if consumers incomes rises…

A: The demand is directly related to the income of consumer. The normal goods are the goods in which…

Q: Suppose the price of menthol, an ingredient used to produce cough drops, has decreased. If nothing…

A: Supply depends on a whole lot of factors including the price of product. The law of Supply says that…

Q: You find that, in the market for frozen dinners, the equilibrium price has risen while the…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…

Q: Explain the difference between an increase in demand (or shift to the right) and a movement down…

A: Demand - it refers to the quantity of a good that a consumer is able and willing to purchase during…

Q: Refer to the figure above. Assume the market is originally at point W. Movement to point Y is a…

A: The movement from original point W to point Y is a combination of an increase in supply and an…

Q: Using demand and supply analysis, explain the effect on the equilibrium price and quantity of a good…

A: In the free market, the equilibrium price and quantity is determined by the forces of demand and…

Q: t is a demand schedule? What is a demand curve? What is the difference between a change in demand…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: A decrease in supply and a decrease in demand will increase price and affect the equilibrium…

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Q: In the market for coffee, the price has declined by 20% and at the same time the quantity sold has…

A: Demand for a commodity is the desire of the commodity backed by the ability and willingness to pay…

Q: Use the table below to answer the question that follows: Price Quantity Demanded Quantity…

A: In the demand and supply model at the equilibrium price level, the quantity demanded of the good…

Q: What is the effect of a decrease in the price of potato chips on the market for pretzels, a…

A: Two goods are said to be complementary when they are used together.Two goods are said to be…

Q: If the price is below the equilibrium level, then the quantity demanded will exceed the quantity…

A: Demand schedule is the tabular representation of quantity demanded at various prices. Demand curve…

Q: What is the difference between a change in quantity supply and a change in supply?

A: Understanding the breaking point between a "differentiation through and through gave" and a…

Q: In a graph of supply and demand, the intersection of the supply and demand curves for a good…

A: In a demand and supply graph, the demand curve is a downward sloping curve because of the inverse…

Q: Suppose the price of ketchup rises dramatically. How would this affect the market price and quantity…

A: The cross elasticity shows the response of the change in the price of one commodity on the demand of…

Q: If the supply curve shifts to the right, what is likely to happen to price and quantity?

A: The quantity of an item or service that producers are willing and able to provide for sale at…

Q: IPhones are mostly made of aluminum. Assume that iPhones are normal goods and that their substitutes…

A: iPhone's are mostly made of aluminium. Here we assume that iPhones are normal goods and that their…

Q: List five basic determinants of market demand that could cause demand to decrease. Be specific with…

A: Demand refers to the consumer's want to buy goods and services at a given price in a given period of…

Q: What happens to the supply curve if quantity supplied falls

A: Supply curve is the notation of relationship between price and quantity supplied. It is positively…

Q: Does a change in consumers' tastes lead to a movement along the demand curve or to a shift in the…

A: Demand- it is the total amount of good or service that consumer is willing to consume or purchase at…

Q: Assuming that Pepsi-Cola and Coca-Cola are substitutes, a decrease in the price of Pepsi-Cola and an…

A: When two goods are substitutes, a change in the price of one can affect the demand for the other.…

Q: If the demand curve shifts to the right, what is likely to happen to price and quantity?

A: Law of demand states that other things being equal, an increase in the price of good or service…

Question

Which of the following changes explains why the equilibrium price of a good would decrease and the quantity would increase?

A)Increase in supply

B)Increase in demand

C)Decrease in demand

D)Decrease in supply

Which of the following changes explains why the equilibrium price of a good would decrease and the quantity would increase?
Increase in Supply
O Increase in Demand
Decrease in Demand
O Decrease in Supply

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Trending now

This is a popular solution!

Step by step

Solved in 5 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

List six basic determinants of market supply that could cause supply to increase. Be specific with those determinants (or causes, factors, or shifters of demand curve) how they will increase market supply.
How would the equilibrium price (P) and equilibrium quantity (Q) for a good be affected if there was a simultaneous increase in demand along with a decrease in supply? P would increase while Q would decrease OP would increase but the impact on Q would be ambiguous Q would increase but the impact on P would be ambiguous Both P and Q would increase
Draw a diagram and show the shifts in demand and supply and indicate your new equilibrium price and quantity, assuming that the magnitude of shifts in the demand and supply curves is the same. What happens to the equilibrium price charged and equilibrium quantity demanded and supplied?
Listed below are several items which would affect the market for personal computers. For each event, do the following: 1) Tell whether the event shifts demand or supply, 2) tell whether the curve increases or decreases, and 3) report the predicted change in price and quantity of personal computers. a) A fall in the price of software b) A government subsidy to computer makers c) A decrease in consumers' income due to a recession d) An increase in the price of silicon (used in making all kinds of computer chips like CPU's, memory chips, etc.).
Use the table below to answer the question that follows: Price Quantity Demanded Quantity Supplied $25 75 175 $24 100 150 $23 125 125 $22 150 100 $21 175 75 $20 200 50 Assuming the good is selling at its equilibrium price, discuss factors that might cause the equilibrium price of the good to change to $21 and the equilibrium quantity to change to 75.
True or False: The law of supply states that as the price of a good or service increases, the quantity supplied by producers also increases, ceteris paribus.
How do you show a decrease in demand graphically? What happens to equilibrium price and quantity?
Suppose there is an increase in consumers' incomes. In the market for automobiles(a normal good), does this event cause an increase in demand or an increase in quantitydemanded? Does this cause an increase in supply or an increase in quantity supplied?
What is the "quantity demanded"? A) the maximum amount of a good that can be consumed during a specific time period B) the amount of a good people are able and willing to buy during a specific time period and at a given price C) the amount of a good people desire D) the amount of a good people are able and willing to buy at all possible prices
For each of the following changes in the demand or supply curves in the automobile market below, draw a graph showing the old demand and supply curves as well as the new demand or supply curve (whichever shifts). Also, show how the equilibrium price and equilibrium quantity change. Show work on 3 different graphs. The income of consumers rises and automobiles are considered a normal good. Over time, and due to new resource discoveries, gasoline prices fall. The availability and price of public transportation falls.
What are the determinants of supply? What happens to the supply curve when any of these determinants changes? Distinguish between a change in supply and a change in the quantity supplied, noting the cause(s) of each.
Discuss the determinants of demand and supply and how they affect the equilibrium price and quantity in a market.