I need help answering questions 1-7. thank you Name Supply $10 Demand Q equilibr

Question

I need help answering questions 1-7.

thank you

Name Supply $10 Demand Q equilibrium 12 16 20 1. The equilibrium price and quantity in the graph above is: A) S8 & 16 units C) D) $10 &12 units. S16&8 units. $12 & 20 units. 2. If the product above is a normal good, an increase in income will A) increase D, increase equilibrium P, and increase equilibrium Q B) increase D, increase equilibrium P, and decrease equilibrium O C) increase S, increase equilibrium P, and increase equilibrium Q D) decrease D, increase equilibrium P, and increase equilibrium 0. 0. An increase in the price of a product that is a close substitute for the product above will A) decrease D, increase equilibrium P, and decrease equilibrium Q B) increase D, increase equilibrium P, and decrease e equilibrium 0 C) increase D, increase equilibrium P, and increase equilibrium 0 D) increase D, decrease equilibrium P, and increase equilibrium Q. An increase in the tastes and preferences for the product above will: A) B) 4. increase S, decrease equilibrium P, and increase equilibrium Q. C) D) decrease S, decrease equilibrium P, and decrease equilibrium 9 increase D, increase equilibrium P, and increase equilibrium 0 decrease D, decrease equilibrium P, and decrease equilibrium Q. 5. An increase in the prices of resources used to produce equilibrium the product above will: A) increase S, increase equilibrium P, and increase equilibrium Q B) increase D, increase equilibrium P, and increase equilibrium o C) decrease S, decrease equilibrium P, and decrease equilibriumG D) decrease S, increase equilibrium P, and decrease equilibrium Q 6. An improvement in the technology used to produce the product above will: se equilibrium P, and decrease equilibrium Q A) decrease S, increa B) decrease S, increase equilibrium P, and increase equilibrium Q. C) increase S, decrease equilibrium P, and increase equilibrium O D) decrease D, decrease equilibrium P, and decrease equilibrium Q 2. An increase in the price of a product that is a complement to the product above will: A) 7. B) C) D) decrease S, decrease equilibrium P, and decrease equilibrium Q increase D, increase equilibrium P, and increase equilibriumQ decrease D, decrease equilibrium P, and decrease equilibrium Q increase D, increase equilibrium P, and decrease equilibrium Q.

Explanation / Answer

1).

Consider the given problem here the equilibrium is the intersection of “demand” and “supply”, => here the equilibrium price and the quantity combination is given by, “P=8” and “Q=16”.

So, “A” be the correct answer.

2).

If the production is a normal good, => as the income increases implied the “D” will increases given the same supply, => the equilibrium, “P” and “Q” both increases. So, here the correct answer is “A”.

3).

An increase in the price of substitute goods, => the demand will shift right side, => given the supply the equilibrium “P” and “Q” both increases, => “C” be the correct answer.

4).

An increase in the tastes and preferences for the product leads to increase in “D”, => given the supply the equilibrium “P” and “Q” both increases, => “C” be the correct answer.

5).

An increase in the price of resources, => the reduction of the supply of the good given the demand, => the demand will shift left side, => the equilibrium “P” increases and “Q” decreases. So, here “D” be the correct answer.

6).

An improvement in the technology used to produce the product leads to increase the supply of the good given the price and the demand, => the equilibrium “P” decreases and the “Q” increases. SO, here “C” be the correct answer.

7).

An increases in the price of the complement goods, => the demand for the product decreases, => given the supply the equilibrium “P” and “Q” both decreases. So, here the correct answer is “C”.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.