Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 5, Problem 9P
To determine
(a)
Impact on the
An increase in income and a decreasing price of a complement for a normal good:-
To determine
(b)
Impact on the equilibrium price and quantity exchanges in the following case
A technological advance and lower input prices:-
To determine
(c)
Impact on the equilibrium price and quantity exchanges in the following case
An increase in the price of a substitute and an increase in income for an inferior good:-
To determine
(d)
Impact on the equilibrium price and quantity exchanges in the following case
Producers' expectations that price will soon fall, and increasingly costly government regulations:-
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Questions
2) impact on supply
3)impact on price
4)impact on quantity
Answers.
a. decrease equilibrium quantity
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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
The figure shows a market for oil.
Price ($/barrel)
72
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Quantity (million barrels)
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