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.
a)price decrease and quantity indeterminate
b)price indeterminate and quantity decrease
c)price indeterminate and quantity increase
d)price indeterminate and quantity decrease
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