Question: 1. Consider the market for scuba gear. If the price of aluminum and steel increase, all the reefs in the ocean die, and sharks become more aggressive, then what happens to the equilibrium price and quantity.
a. Price increases and the quantity change is ambiguous
b. Price decreases and the quantity change is ambiguous
c. Quantity increases and the price change is ambiguous
d. Quantity decreases and the price change is ambiguous
e. Both price and quantity changes are ambiguous
2. Consider the market for Tuxedos, the dry and flavorless knock-off to Oreos, in America. If the price of sugar increases and the income of Americans decreases, then what happens to the equilibrium price and quantity.
a. Price increases and the quantity change is ambiguous
b. Price decreases and the quantity change is ambiguous
c. Quantity increases and the price change is ambiguous
d. Quantity decreases and the price change is ambiguous
e. Both price and quantity changes are ambiguous