MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 4, Problem 1SQ
To determine
The impact of decrease in the
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Check out a sample textbook solutionStudents have asked these similar questions
An increase in supply and a decrease in demand occur in a market. What happens to the equilibrium price and quantity?
A.) The equilibrium price decreases; the equilibrium quantity increases.
B.) The equilibrium price increases; the equilibrium quantity decreases.
C.) The equilibrium price increases; the change in the equilibrium quantity is uncertain.
D.) The equilibrium price decreases; the change in the equilibrium quantity is uncertain.
Which of the following will definitely occur when there is an increase in demand and decrease in supply of a product?
a. An increase in equilibrium price
b. A decrease in equilibrium price
c. An increase in equilibrium quantity
d. S decrease in equilibrium quantity
A decrease in demand will cause a decrease in the equilibrium quantity and the equilibrium price.
a. True
b. False
Chapter 4 Solutions
MACROECONOMICS FOR TODAY
Ch. 4.2 - Prob. 1YTECh. 4.2 - Prob. 2YTECh. 4.2 - Prob. 3YTECh. 4.2 - Prob. 4YTECh. 4.3 - Prob. 1YTECh. 4.3 - Prob. 2YTECh. 4 - Prob. 1SQPCh. 4 - Prob. 2SQPCh. 4 - Prob. 3SQPCh. 4 - Prob. 4SQP
Ch. 4 - Prob. 5SQPCh. 4 - Prob. 6SQPCh. 4 - Prob. 7SQPCh. 4 - Prob. 8SQPCh. 4 - Prob. 9SQPCh. 4 - Prob. 10SQPCh. 4 - Prob. 1SQCh. 4 - Prob. 2SQCh. 4 - Prob. 3SQCh. 4 - Prob. 4SQCh. 4 - Prob. 5SQCh. 4 - Prob. 6SQCh. 4 - Prob. 7SQCh. 4 - Prob. 8SQCh. 4 - Prob. 9SQCh. 4 - Prob. 10SQCh. 4 - Prob. 11SQCh. 4 - Prob. 12SQCh. 4 - Prob. 13SQCh. 4 - Prob. 14SQCh. 4 - Prob. 15SQCh. 4 - Prob. 16SQCh. 4 - Prob. 17SQCh. 4 - Prob. 18SQCh. 4 - Prob. 19SQCh. 4 - Prob. 20SQ
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- Refer to the figure above. Assume the market is originally at point W. Movement to point Y is a combination of: A. an increase in quantity supplied and an increase in demand. B. an increase in supply and an increase in demand. C. an increase in supply and an increase in quantity demanded. D. a decrease in supply and an increase in quantity demanded.arrow_forwardGraph demand and supply. Show graphically and explain the change in equilibrium price and quantity. A. Demand increases greater than a supply decrease. B. Demand decreased equal to a supply decrease. C. Supply increases more than a demand decrease.arrow_forwardSuppose the demand of a product decreases. What will be the effect on the market equilibrium price and quantity if supply is perfectly inelastic? If supply is perfectly inelastic, then A. the equilibrium price will decrease and the equilibrium quantity will decrease. B. the equilibrium price will decrease and the equilibrium quantity will not change. C. the equilibrium price will not change and the equilibrium quantity will not change. D. the equilibrium price will increase and the equilibrium quantity will increase.arrow_forward
- A rise in the wages paid to workers in the beef industry will: A. Decrease both the supply and demand for beef, lowering the equilibrium price but raising the equilibrium quantity of beef. B. Increase the demand beef, raising the equilibrium price and quantity of beef. C. Decrease the supply of beef, raising the equilibrium price and quantity of beef. D. Decrease the supply of beef, raising the equilibrium price but lowering the equilibrium quantity of beef. E. Decrease the demand for beef, lowering the equilibrium price and quantity of beef.arrow_forwardWhich of the following would result from a decrease in supply? A. a decrease in the equilibrium price and a decrease in the equilibrium guantity B. an increase in the equilibrium price and an increase in the equilibrium quantity C. a decrease in the equilibrium price and an increase in the equilibrium quantity D. an increase in the equilibrium price and a decrease in the equilibrium quantity Which of the following would cause a rightward shift of the demand curve and a leftward shift of the supply curve? A. a decrease in the price of a substitute and a decrease in the price of a complement in production B. an expectation of higher income and a decrease in productivity C. a positive change in consumer tastes and a decrease in the cost of an input D. a decrease in the price of a complement and an expectation by firms of a lower price E. an expectation by consumers of a lower price and a decrease in the number of firms in an industryarrow_forwardIf supply is unchanged, a decrease in the demand for coffee will cause the equilibrium price to: Answers: A. Fall and equilibrium quantity to fall. B. Rise and equilibrium quantity to rise. C. Rise and equilibrium quantity to fall. D. Fall and equilibrium quantity to rise.arrow_forward
- carefully explain what is happening in the market for tea. indicate the impact if any on demand, supply,price and quantity .coffee and tea are demand substitutes. coffee plantations increase the supply of coffee. choose the suitable answer. 1) Impact on demand a. decrease equilibrium quantity b.excess supply c. increase equilibrium quantity d. decrease towards equilibrium e.increase towards equilibrium f. change in price in uncertain g.decrease equilibrium price h.excess demand i. change in quantity uncertain j.increase equilibrium price k. no impact l.shift outwards/ to right m.shift inwards/to leftarrow_forwardWhich of the following will definitely result in a decrease in the equilibrium price of a good? Select one: a. A decrease in demand together with an increase in supply. b. An increase in both demand and supply. c. A decrease in supply only. d. A decrease in both demand and supply. e. An increase in demand together with a decrease in supply.arrow_forwardIf the quantity demanded is less than the quantity supplied, then:A. the price will have to increase to establish equilibrium.B. there will be an excess supply of goods.C. the demand will shift to the right.D. there will be a shortage of goods.arrow_forward
- Consider the market for electrical cars. The price of gasoline increases and the cost of producing electrical car batteries rise. How will the market for electrical cars respond? a. prices will rise and the equilibrium quantity may or may not change. b. prices will rise and the equilibrium quantity will increase. c. prices will rise and the equilibrium quantity will decrease. d. There is not enough information to answer the questionarrow_forwardcarefully explain what is happening in the market for tea. indicate the impact if any on demand, supply,price and quantity .coffee and tea are demand substitutes. coffee plantations increase the supply of coffee. choose the suitable answer for QUESTION 2, 3 and 4. Questions 2) impact on supply 3)impact on price 4)impact on quantity Answers. a. decrease equilibrium quantity b.excess supply c. increase equilibrium quantity d. decrease towards equilibrium e.increase towards equilibrium f. change in price in uncertain g.decrease equilibrium price h.excess demand i. change in quantity uncertain j.increase equilibrium price k. no impact l.shift outwards/ to right m.shift inwards/to leftarrow_forwardDuring a severe recession, the demand for luxury automobiles will be affected. At the same time, more companies introduce new models of luxury automobiles. As a result of these changes, what would happen to the equilibrium of the automobile market? a. the effect on the market equilibrium price of luxury automobiles cannot be predicted. b. the market equilibrium quantity of luxury automobiles sold will definitely increase. c. the market equilibrium price of luxury automobiles will definitely decrease. d. the market equilibrium price of luxury automobiles will definitely increase.arrow_forward
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