EBK ESSENTIALS OF ECONOMICS
EBK ESSENTIALS OF ECONOMICS
8th Edition
ISBN: 8220103599832
Author: Mankiw
Publisher: Cengage Learning US
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Chapter 4, Problem 4CQQ
To determine

Change in supply and equilibrium price.

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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 left
Consider the market for Teslas. The price of gasoline decreases and the cost of producing Tesla batteries decrease. How will the market for Teslas respond?   a   prices will fall and the equilibrium quantity may or may not change.   b   prices will fall and the equilibrium quantity will decrease.   c   prices will fall and the equilibrium quantity will increase.   d   There is not enough information to answer the question
11. The October 22-23, 2022, Wall Street Journal reports that Whirlpool is planning to decrease the quantity of appliances supplied from its factories.  This is because the __________ for appliances is ___________ and consumers can expect _______ prices.   Supply; increasing; lower Quantity demanded; falling; lower Demand; falling; lower Demand; increasing; rising A and B only.
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