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n the market for a good, there is an increase in demand and a decrease in supply

ID: 1202158 • Letter: N

Question

n the market for a good, there is an increase in demand and a decrease in supply. You would expect the equilibrium price to _____ and the equilibrium quantity sold to ____.

no change : increase

increase :uncertain increase :

no change uncertain : increase

In the market for beef, a severe drought increases the price of corn (animal food). You would expect the equilibrium price of beef to _____ and the equilibrium quantity sold to ____. increase : decrease decrease : decrease increase : increase decrease : increase In the market for pizza, five new restaurants open. You would expect the equilibrium price to _____ and the equilibrium quantity sold to ____.

increase : increase

increase : decrease

decrease : increase

decrease : decrease

In the market for pizza, the price of hamburgers (a substitute for pizza) has gone up. You would expect the equilibrium price of pizza to _____ and the equilibrium quantity of pizza sold to ____.

increase : increase

decrease : increase

decrease : decrease

increase : decrease

Explanation / Answer

* In the market for a good, there is an increase in demand and a decrease in supply. You would expect the equilibrium price to _____ and the equilibrium quantity sold to ____.

Ans: increase :uncertain increase.

* In the market for beef, a severe drought increases the price of corn (animal food). You would expect the equilibrium price of beef to _____ and the equilibrium quantity sold to ____

Ans: increase : decrease decrease.

* In the market for pizza, five new restaurants open. You would expect the equilibrium price to _____ and the equilibrium quantity sold to ____.

Ans: decrease : increase.

* In the market for pizza, the price of hamburgers (a substitute for pizza) has gone up. You would expect the equilibrium price of pizza to _____ and the equilibrium quantity of pizza sold to ____

Ans: increase : increase.

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