Goods A and B are substitutes in production. The price of good A rises. As a result, the equilibrium price of good B -, and the equilibrium quantity A) rises; decreases B) falls; increases C) falls; decreases D) rises; increases

Goods A and B are substitutes in production. The price of good A rises. As a result, the equilibrium price of good B -, and the equilibrium quantity A) rises; decreases B) falls; increases C) falls; decreases D) rises; increases

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the supply of nails shown in Figure 2. The initial supply of nails is S (in black), the initial price of a pound of nails is $12, and the initial quantity supply of nails is 40K pounds. Which of the following correctly describes the effect of a decrease in the price of a pound of nails from $12 to $5? A) The supply curve shifts left to S'' (in red), and the quantity supply of nails decreases to 25K pounds. B) The supply curve remains at S (in black), and the quantity supply of nails remains at 40K pounds. C) The supply curve remains at S (in black), and the quantity supply of nails decreases to 25K pounds. D) The supply curve shifts left to S'' (in red), and the quantity supply of nails remains at 40K pounds.
Oyster crackers are a complement for clam chowder. If the price of clam chowder falls, the quantity of clam chowder demanded , which the demand for oyster crackers. Because of the change in the equilibrium quantity of oyster crackers, the demand for wheat flour by oyster cracker producers , causing the equilibrium price of wheat flour to . This means producers of bread face input prices, and the supply of bread . The resulting in the price of bread causes people to substitute , so the demand for cereal .
Resource X is necessary to the production of good Y. If the price of resource X rises, the _____________ curve for good Y will shift ____________ resulting in a(n) _____________ in the equilibrium price of Y and a(n) ____________ in the equilibrium quantity of Y. A. supply; rightward; decrease; increase. B. demand; leftward; decrease; decrease C. demand; rightward; increase; increase D. supply; leftward; increase; decrease E. supply; leftward; increase; increase
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Begin with the market for slushies in equilibrium. What will happen to supply if the price of sugar increases? Will the supply of slushies increase, decrease, or stay the same if the price of sugar increases? A increase B decrease C) stay the same
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Consider the market for apples. For each of the following separate scenarios, determine if the demand curve or supply curve shifts, and in which direction does the curve shift. Farmers receive subsidies for growing apples. [ Choose ] [ Choose ] Supply of apples shifts to the left. Price of apples increases. Demand for apples shifts to the left. Supply of apples shifts to the right. A new apple commercial airs on TV. Demand for apples shifts to the right. Neither demand for apples nor supply of apples shifts. A study is released showing apples improve eyesight. [ Choose ] Price of oranges decreases. Oranges and apples are substitutes. [ Choose ] Because of drought, the amount of apples harvested decreases significantly. [ Choose ] > >
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Suppose that today the market for homes is in equilibrium. Tomorrow both the supply and demand curves for homes will shift to the right. As a result, the equilibrium price ........... and the equilibrium quantity ............. a will fall; will fall b will fall; will rise c cannot be determined; will rise d cannot be determine; will fall
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