Question

QUESTION 13

1. Market: Duracell Batteries

   Event: Suppose the price of Eveready batteries decreases.

   Question: What is the determinant of supply?

   	a.	None
   	b.	Price of goods made with same resources
   	c.	Technology
   	d.	Price of inputs
   	e.	Expectation of future price changes
   	f.	Number of sellers

3 points   

QUESTION 14

1. Market: Duracell Batteries

   Event: Suppose the price of Eveready batteries decreases.

   Question: What is the determinant of demand?

   	a.	None
   	b.	Consumer preferences
   	c.	Price of related goods
   	d.	Income of consumers
   	e.	Expectation of future price changes
   	f.	Number of buyers in the market

3 points   

QUESTION 15

1. Market: Duracell Batteries

   Event: Suppose the price of Eveready batteries decreases.

   Question: What is the change in supply?

   	a.	Increase
   	b.	Decrease
   	c.	No change
   	d.	Indeterminate

3 points   

QUESTION 16

1. Market: Duracell Batteries

   Event: Suppose the price of Eveready batteries decreases.

   Question: What is change in demand?

   	a.	Increase
   	b.	Decrease
   	c.	No change
   	d.	Indeterminate

3 points   

QUESTION 17

1. Market: Duracell Batteries

   Event: Suppose the price of Eveready batteries decreases.

   Question: What will the change in equilibrium price be?

   	a.	Increase
   	b.	Decrease
   	c.	No change
   	d.	Indeterminate

3 points   

QUESTION 18

1. Market: Duracell Batteries

   Event: Suppose the price of Eveready batteries decreases.

   Question: What will the change in equilibrium quantity be?

   	a.	Increase
   	b.	Decrease
   	c.	No change
   	d.	Indeterminate

Answer 1

Q13) The answer is none. If the price of Eveready battery decreases, then in this case the price of related good decreases, so in this case the determinant of supply should have been price of related good because the supply of Duracell battery will then increase because producers will find it profitable to sell the Duracell batteries.

Q14) The answer is price of related goods. Duracell batteries and Eveready batteries are substitutes of each other which can be used in place of one another, So, if the price of Eveready battery decreases, the demand for Duracell battery will decrease because consumers will shift their demand from Duracell battery to Eveready battery due to lower price.

Q15) The answer is increase. If the price of Eveready battery decreases, then the supply of Duracell battery will increase because the producers will find it profitable to sell the battery which is priced higher.

Q16) The answer is decrease. If the price of Eveready battery decreases, then from the consumer's point of view, they will find it reasonable to buy the commodity whose price is lower, So, the demand for Duracell batteries will decrease and the demand for Eveready batteries will increase.