If soup is an inferior good and income rises, then: a. the equilibrium price of soup and the equilibrium quantity of soup will both rise. b. the equilibrium price of soup will rise and the equilibrium quantity of soup will fall. c. the equilibrium price of soup and the equilibrium quantity of soup will both fall. d. the equilibrium price of soup will fall and the equilibrium quantity of soup will rise.

Question 4 Coffee and tea are substitutes. Suppose a typhoon destroys half the tea trees of a country, but does not impact the supply of coffee since coffee is imported from a foreign country. a. What happens to the price and quantity of tea? Use a labeled diagram to answer the question. b. C. d. e. 3 f. Suppose the price of tea rises from RMB 200 Yuan per pound to RMB300 Yuan per pound, and consumers' purchases of tea reduced from 100,000 pounds to 80,000 pounds. Calculate the price elasticity of demand of tea (using the midpoint method). Does consumers' total expenditure on tea increase or decrease? How is this change related to the nature of the price elasticity of demand of tea? How do you expect consumers' total expenditure on tea to change over a longer period (if the production capacity of tea could not be restored)? Why? What happens to the price and quantity of coffee? Use a labeled diagram to answer the question. Suppose the quantity of coffee rises from 5,000 pounds to 6,000…

A change in which of the following will shift the demand curve for hamburgers? Select one: a. A fall in the price of french fries, a complement for hamburgers. b. An increase in the price of a hamburger. c. An increase in the number of hamburger restaurants. d. An.increase in the price of the meat used to produce hamburgers.

If the price of Pepsi increases, what will happen to the market price of Coke?