The equilibrium price of teddy bears is $5.A study comes out that says owning a teddy bear causes you 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:
Verified
Q115: According to the supply and demand model,when
Q116: When supply shifts to the right and
Q117: Taxes cause the equilibrium price of a
Q118: Oil is a main component in the
Q119: Wine and cheese are complement goods because
Q121: A "twofold" change is when
A) income goes
Q122: When both curves shift
A) equilibrium price is
Q123: What would we expect to happen to
Q124: If the price and quantity for an
Q125: Which of the following scenarios best describes
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