Question

IncorrectQuestion 8

0 / 1 pts

In the market for restaurant dining, if wages for restaurant workers increases and the preference for restaurant dining declines, then the most likely affect in the market for restaurant dining is:

price will increase, and quantity exchanged will increase.

price will increase, and quantity exchanged will decrease.  

price will decrease, and quantity exchanged will increase.  

price will decrease, and quantity exchanged will decrease.

price will increase, and quantity exchanged will remain the same.

price will decrease, and quantity exchanged will remain the same.

price will remain the same, and quantity exchanged will increase.

price will remain the same, and quantity exchanged will decrease.

IncorrectQuestion 9

0 / 1 pts

In the market for bananas, if consumer preference for bananas increases and costs to ship bananas decreases, then the most likely affect in the market for bananas is:

price will increase, and quantity exchanged will increase.

price will increase, and quantity exchanged will decrease.

price will decrease, and quantity exchanged will increase.

price will decrease, and quantity exchanged will decrease.

price will increase, and quantity exchanged will remain the same

price will decrease, and quantity exchanged will remain the same.

price will remain the same, and quantity exchanged will increase

price will remain the same, and quantity exchanged will decrease.

IncorrectQuestion 10

0 / 1 pts

In recent years, in the market for computers it has been observed that prices have decreased and the quantity exchanged has increased. The most likely economic reason for this is:

an increase in demand for computers.

an increase in technology in the production of computers.

an increase in demand for computers and an increase in technology in the production of computers.  

a decrease in demand for computers and an increase in technology in the production of computers.

Answer 1

8. If the wages for restaurant workers increases, then it would be costly to supply restaurant dining. So, the supply for restaurant dining would decrease and supply curve will shift to the left. As a result, equilibrium price will increase and equilibrium quantity will decrease.

The preference for restaurant dining declines, this would decrease the demand for it . Therefore, demand curve shifts to the left. As a result , equilibrium price will decrease and equilibrium quantity will decrease.

By combining both effects, overall the price will remain the same (if demand and supply will shift by equal amount ) and quantity exchanged will decrease.

9. If consumer preferences for bananas increases, this would increase the demand for bananas. Therefore, demand curve would shift to the right. As a result, the equilibrium price will increase and equilibrium quantity will increase.

Cost to ship bananas decreases, this would increase the supply of bananas . Therefore, supply curve will shift to the right. As a result, the equilibrium price will decrease and equilibrium quantity will increase.

By combining both effects, overall the price will remain the same (if demand and supply will shift by equal amount ) and quantity exchanged will increase.

10. An increase in technology in the production of computers will increase the supply of computers . Therefore, supply curve would shift to the right. As a result, the equilibrium price will decrease and quantity exchanged will increase. Hence, option(B) is correct.