Explain what an increase and decrease in demand does to equilibrium price and quantities and why?...

Explain what an increase and decrease in demand does to equilibrium price and quantities and why? Then, explain what an increase and decrease in supply does to equilibrium price and quantities and why?

Expert Solution

Rahul Sunny answered 2 years ago

An increase in demand can be expected to ["increase", "decrease"] equilibrium price and ["decrease", "increase"] ...

An increase in demand can be expected to ["increase", "decrease"] equilibrium price and ["decrease", "increase"] equilibrium quantity. An increase in supply can be expected to ["decrease", "increase"] equilibrium price and ["decrease", "increase"] equilibrium quantity. If there is an increase in demand and an increase in supply then we can expect equilibrium price to ["increase", "stay the same", "it is not possible to say", "decrease"] and equilibrium quantity to ["decrease", "stay the same", "increase", "it is not...

Why does price ceiling mean decrease quality? why does price floor mean Increase in quality?

5. An increase in the price of oil causes a. a decrease in the demand for...

5. An increase in the price of oil causes a. a decrease in the demand for substitute goods. b. an increase in the price of substitute goods. c. an increase in the demand for complementary goods. d. an increase in the price of complementary goods. 6. During the postwar period, changing patterns of consumer demand led to changes in the distribution of jobs in the US economy. In particular, the income elasticity of demand for many consumer products was ____________...

If demand is price inelastic, a decrease in price will cause a a. larger percentage increase...

If demand is price inelastic, a decrease in price will cause a a. larger percentage increase in quantity demanded than the percentage decrease in price, thereby decreasing total revenue. b. smaller percentage decrease in quantity demanded than the percentage decrease in price, thereby decreasing total revenue. c. smaller percentage decrease in quantity demanded than the percentage decrease in price, thereby increasing total revenue. d. larger percentage decrease in quantity demanded than the percentage decrease in price, thereby decreasing total revenue....

1.Given the following solutions, define if price equilibrium and quantity equilibrium increase or decrease as well...

1.Given the following solutions, define if price equilibrium and quantity equilibrium increase or decrease as well as graph each of them in relation to the market for coke: a) bad weather wreaks havoc with corn crop (main ingredient for coke) b) the price of Pepsi (a substitute) rises dramatically: c) increase in the umber of coke suppliers in the market

If both demand and supply increase, then the equilibrium price A) and equilibrium quantity increases. B)...

If both demand and supply increase, then the equilibrium price A) and equilibrium quantity increases. B) falls but the equilibrium quantity increases. C) could either rise or fall, but the equilibrium quantity increases. D) rises, and the equilibrium quantity could either increase or decrease. E) falls, and the equilibrium quantity could either increase or decrease.

1.should these monopolists increase or decrease output, increase or decrease price, and on what information is...

1.should these monopolists increase or decrease output, increase or decrease price, and on what information is your answer based? Can the monopolists maximize profits minimize a loss ,or should they shutdown? Give a reasons for your answers based on the numbers in the rows Price MR Q TR TC P/L TVC ATC AVC MC 10 5 10 100 50 +50 30 5 3 7 50 <50 50 2500 2600 -100 1600 52 32 50 10 5 1000 10000 8000 +2000...

Does insurance increase or decrease the demand for medical care? Does this represent a problem for...

Does insurance increase or decrease the demand for medical care? Does this represent a problem for any parties involved in health care? Why? Research the current trend of insurance since the inception of the Affordable Care Act. How might the change in policy effect the demand for healthcare moving forward?

Does a proce ceiling increase or decrease the number of transactions in a market? Why? What...

Does a proce ceiling increase or decrease the number of transactions in a market? Why? What about a price floor?

Question: Equilibrium price must decrease if: a. demand increases and supply increases b. demand increases and...

Question: Equilibrium price must decrease if: a. demand increases and supply increases b. demand increases and supply decreases c. demand decreases and supply decreases d. demand decreases and supply increases

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