Solved

The Equilibrium Price of Teddy Bears Is $5

Question 80

Multiple Choice

The equilibrium price of teddy bears is $5.A study comes out that says owning a teddy bear causes one to earn a lower salary.If all other factors are held constant,which of the following scenarios could happen?


A) The price of teddy bears increases to $7 because of a supply shift.
B) The price of teddy bears decreases to $4 because of a supply shift.
C) The price of teddy bears decreases to $4 because of a demand shift.
D) The price of teddy bears increases to $7 because of a demand shift.
E) The price of teddy bears increases to $7 because of both a demand shift and a supply shift.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents