Suppose the market for peanut butter experiences the following event: An increase in peanut allergies reduces the number of buyers for peanut The effect on equilibrium will be: O Decrease in equilibrium price and increase in equilibrium quantity Increase in equilibrium price and decrease in equilibrium quantity

Suppose the market for peanut butter experiences the following event: An increase in peanut allergies reduces the number of buyers for peanut The effect on equilibrium will be: O Decrease in equilibrium price and increase in equilibrium quantity Increase in equilibrium price and decrease in equilibrium quantity

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 3TY

See similar textbooks

Similar questions

Suppose that California wildfires destroy one-third of the grape crop in the state. What would be the expected effect on the market for raisins? O increase in equilibrium price, increase in equilibrium quantity O decrease in equilibrium price, increase in equilibrium quantity decrease in equilibrium price, decrease in equilibrium quantity no change in the market for raisins increase in equilibrium price, decrease in equilibrium quanttiy
Suppose the market for wooden picnic benches experiences the following event: The price of plastic picnic benches (a substitute for wooden picnic benches) decreases in price. The effect on equilibrium will be: O Increase in equilibrium price and quantity O Decrease in equilibrium price and increase in equilibrium quantity Increase in equilibrium price and decrease in equilibrium quantity O Decrease in equilibrium price and quantity
Suppose the supply curve for open-heart surgery is vertical at a hospital for heart conditions. If the demand for open-heart surgeries increases, what would happen to the equilibrium price of open-heart surgery O The equilibrium price will increase due to an increase in quantity demanded O The equilibrium price will decrease due to a decrease in supply and fixed demand O The equilibrium price will increase due to an increase in demand and fixed supply O The equilibrium price will decrease due to an increase in supply and fixed demand
Suppose an economic boom causes incomes to increase and, at the same time, drives up wages for the sales representatives who work for cell phone companies. Assume that smartphones are a normal good. This will cause the: O price of cell phones and the equilibrium quantity to rise. O price of cell phones to rise, but the change in the equilibrium quantity is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply. O price of cell phones and the equilibrium quantity to fall. O quantity of cell phones to rise, but the change in the equilibrium price is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply.
Several advertisements announce that the price of hand sanitizer will be decreasing next month. At the same time, the price of rubbing alcohol, an ingredient used to make hand sanitizer, has increased. Given these two effects, what can we say about the current equilibrium price and quantity of hand sanitizer? O Equilibrium price will decrease; the effect on quantity is ambiguous. Equilibrium price will increase, equilibrium quantity will decrease. O Equilibrium quantity will decrease; the effect on price is ambiguous. O Equilibrium quantity will increase; the effect on price is ambiguous.
When there is an decrease in the demand for a good, this can be expected to cause in the equilibrium price of the good and in the equilibrium quantity of the good bought and sold, all else the same. O a decrease : an increase an increase : an increase O an increase : a decrease O a decrease : a decrease « Previous Next ASUS f5 16 17 & 5 6
What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start producing music compact discs, and music lovers experie an increase in income? Select one: O a. Equilibrium price increases and equilibrium quantity decreases O b. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. O c. Equilibrium price would decreaşe, but the impact on eguilibrium quantity would be ambiguous. O d. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. e. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start producing music compact discs, and music lovers experience an increase in income? Select one: O a. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. O b. Equilibrium price increases and equilibrium quantity decreases O c. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. O d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. O e. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. Nexage IMG_7969.jpeg JPED
Leticia is an Uber driver who works at night. Last night, there was a large decrease in the number of Uber drivers willing to work. How will this change in supply affect the equilibrium, all else equal? O Equilibrium price falls and quantity falls O Equilibrium price rises and quantity rises O Equilibrium price falls and quantity rises O Equilibrium price rises and quantity falls
If butter and margarine are substitutes, an increase in the price of butter causes: Select one: O a. quantity demanded of margarine to fall and the demand curve for butter to shift toward the origin O b. quantity demanded of butter remains constant, but the demand for margarine decreases O c. the demand curve for both butter and margarine shift O d. decrease in quantity demanded for butter and an outward shift of the demand curve for margarine
Which of the following best describes the law of demand? O When incomes increases, the demand for goods increases O When the price of a good decreases, the demand for the good increases When the demand for a good increases, consumers' willingness and ability to buy the good increases O When the price of a good decreases, the quantity demanded of the good decreases O When the price of a good increases, the quantity demanded of the good decreases
The price of cereal, a complement good, has decreased. At the same time, a new and improved pasteurization process makes milk production more efficient. Given these two effects, what can we say about the equilibrium price and quantity of milk? O Equilibrium quantity will increase; the effect on price is ambiguous. Equilibrium price will increase; the effect on quantity is ambiguous. O Equilibrium price will decrease; the effect on quantity is ambiguous. O Equilibrium quantity will decrease, equilibrium price will increase.