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- 3 S i a 9 ormation X During an exam week, students flock to the stores to buy more espresso. As a result, the Q (Supply/Demand) in espresso would A/ (left/right) and the increase to the equilibrium price (P*) of espresso would A (increase/decrease). The equilibrium quantity (Q") of espresso would (increase/decrease)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?The law of demand states that as product’s price increases, its quantity demanded decreases, assuming other factors remain constant or ‘ceteris paribus’. Why is it necessary to assume that other factors remain constant?
- What is the effect of a decrease in the price of potato chips on the market for pretzels, a substitute good that is initially in equilibrium?Assume coke and Diet Coke are substitute for consumer. What would happen to the equilibrium prices and quantities of both regular and Diet Coke if the price of sugar increasesSuppose that demand and supply of apples are described by the following equations: P = 100 - 3Q (demand) P = 20 + Q (supply) a) Calculate the equilibrium quantity.
- Suppose a 4 percent increase in income results in a 2 percent decrease in the quantity demanded of a good determine what type of good it is ?The figure below illustrates the market for pumpkins just before the harvest for Halloween. Currently the market equilibrium price of a pumpkin is $6. At that price, consumers would buy them million pumpkins. Suppose a freak storm wipes out 30% of the pumpkin crop. On the graph, shift the appropriate curve to reflect the impact of the storm on the equilibrium price and quantity of pumpkins. figure calculate the price elasticity of demand for pumpkins. Use the midpoint formula. Round your answer to two decimal points.Explain, with the aid of a graph, the effect of an increase in income on the equilibrium price and quantity of wine if wine is an inferior good. Explain the law of demand.
- Suppose both supply and demand increase. What effect will this have on the equilibrium quantity? Explain; graphs are recommendedAssume coke and diet coke are substitutes for consumers. What would happen to the equilibrium prices and quantities of both regular and diet coke if the price of sugar increases?Assume that pickled eggs are an inferior good and its market is currently in equilibrium. What will happen to the equilibrium price and quantity of pickled eggs if consumer incomes increase? Group of answer choices
