Here is some questions need help
- How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in the given market; that is, do price and quantity increase or decrease, or are the answers indeterminate because they depend on the magnitudes of the shifts? Assume that markets are competitive.
a. Suppose the price of cheese, an ingredient used in making pizza increases. In the pizza market ...
Price:
(select one below)
Decreases
Indeterminate
Increases
Quantity
(select one below)
Increases
Decreases
Indeterminate
b. Suppose income increases. What happens in the macaroni-and-cheese market, given that macaroni and cheese is an inferior good.
Price:
Quantity:
c. Geologists discover vast deposits of oil in the U.S. What happens in the oil market?
Price:
Quantity:
d. In recent years the cost of producing organic produce in the United States has decreased largely due technological advancement. At the same time, more and more Americans prefer organic produce over conventional produce.
Price:
Quantity:
e. A new study about the health benefits of eating dark chocolate is published. What happens in the dark chocolate market?
Price:
Quantity:
f. The demand for soda falls as more people switch to flavored water and ice tea. At the same time, there is increase in the supply of soda as a result of reductions in input prices.
Price:
Quantity:
g. Demand increases and supply decreases.
Price:
Quantity:
h. Demand decreases and supply decreases.
Price:
Quantity:
2- When computing elasticity, changes in quantity demanded or quantity supplied are measured using percentage change.Similarly, changes in price are also measured in percentage terms rather than in terms of absolute dollars. We use percentages because this method is:
A: always right.
B: a correct unit-based value.
C: corrected for direction of change.
D: not dependent on the units of measure (cups, ounces, etc.)