The market for chewing gum is competitive with a current price of 50 cents per pack and quantity of 100, 000 packs.Which of the following events would lead to a new equilibrium price of 40 cents and quantity of 80, 000 packs?
A) an increase in the price of other kinds of candy
B) an increase in the price of the ingredients used to make chewing gum
C) a decrease in the number of young people in the population
D) an agreement by workers in the chewing gum industry to work for lower wages
E) an improvement in chewing gum production technology
Correct Answer:
Verified
Q161: A rightward shift of a supply curve
A)represents
Q162: Exhibit 4-4 Q163: If the tea harvest is bad in Q164: An increase in supply will cause equilibrium Q166: What is the effect of a decrease Q167: The market for chewing gum is competitive Q168: For a given supply curve, an increase Q169: An increase in demand for chocolate chips Q170: A decrease in supply will cause a(n) Q233: Suppliers recognize there is a shortage in
A)increase
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents