(1)Given a supply curve that is positively sloped and a demandcurve for a normal
ID: 1241143 • Letter: #
Question
(1)Given a supply curve that is positively sloped and a demandcurve for a normal good is negatively sloped, an increase in incomewill most likely result in:a) an increase in price and quantity
b) a decrease in price and an increase in quantity
c) a decrease in both price and quantity
d) an increase in price and a decrease in quantity
(2)There is an increase in incomes. What happens in the market forsteak?
a) the equilibrium price falls, and the equilibrium quantityrises
b) the equilibrium prices rises, and the equilibrium pricefalls.
c) the equilibrium price and quantity rise
d) the equilibrium price and quantity fall
(3)The price of apples falls, What happens in the market for applepies?
a) the equilibrium price falls, and the equilibrium quantityrises
b) the equilibrium price rises, and the equilibrium quantityfalls
c) the equilibrium price and quantity rise
d) the equilibrium price and quantity fall
(4)The price of cotton rises. What happens in the market for cottonshirts?
a) the equilibrium price falls and the equilibrium quantityrises
b) the equilibrium price rises and the equilibrium quantityfalls
c) the equilibrium price and quantity rise
d) the equilibrium price and quantity fall
(5)The price of oranges rises. What happens in the market forapples, which are a substitute for oranges?
a) the equilibrium price falls, and the equilibrium quantityrises
b) the equilibrium price rises, and the equilibrium quantityfalls
c) the equilibrium price and quantity rise
d) the equilibrium price and quantity fall
Explanation / Answer
1. shift in demand to the right, supply curve stay thesame. thus 1.(a) 2. Shift in demand to the right, supply curve stay thesame. thus 2.c 3. shift in supply curve to the right- demand curve stays thesame. Thus 3 a. 4. Shift in supply curve to the left- demand curve stays thesame. thus 4.b 5. shift in demand curve to the right- supply curve stays thesame. thus 5.c Please rate lifesaverRelated Questions
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