Suppose that two concurrent changes occur in each of the following four different markets. What will happen to price and quantity traded in each case?
Changes affecting demand
1. The price of a substitute product decreases.
2. Incomes increases.
Changes affecting supply
A. The price of inputs decrease.
B. The number of suppliers decreases.
a) Changes 1 and A for a normal product.
b) Changes 2 and B for an inferior product.
c) Changes 2 and A for a normal product.
d) Changes 1 and B for a normal product.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q97: Q119: Using graphs, explain what will happen to Q121: Assume the market for beer is initially Q122: "A decade-long economic boom is one reason Q127: Assume a normal good.An increase in income Q127: Assume the market for apple pie is Q128: The table below shows the market Q129: Assume X and Y are substitutes in Q130: Distinguish between a price control and a Q137: Suppose a surplus of corn is created
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