What happens in the market for fish if the price of chicken rises dramatically (assume fish and chicken are substitutes), and new laws significantly limit the amount of fish that can be caught.
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What happens in the market for fish if the
(assume fish and chicken are substitutes), and new laws significantly limit the
amount of fish that can be caught.
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- Assume that tea and lemons are complements and coffee and tea are substitutes. Say that the government imposes a price ceiling on tea that is below the current market equilibrium price. a)How, if at all, will this affect the price of lemons? b)How, if at all , will this affect the price of coffee?If consumers consider chicken and turkey to be substitutes, and, ceteris paribus, the price of turkey increases, which of the following would we expect to occur? The supply curve for chicken would shift to the left. The demand curve for chicken would shift to the left. The supply curve for chicken would shift to the right. The demand curve for chicken would shift to the right.Good B and Good A are substitutes. If the price of Good A rises, what will happen to the demand curve of Good B?
- Consider two markets: the market for coffee and the market for hot cocoa. The initial equilibrium for both markets is the same, the equilibrium price is $5.50, and the equilibrium quantity is 37.0. When the price is $8.75, the quantity supplied of coffee is 69.0 and the quantity supplied of hot cocoa is 101.0101.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for hot cocoa. Please round to two decimal places.Suppose goods A and B are substitutes. If the price of good A increases, will the demand for good B increase or decrease?Good A (an inferior good) and Good B (a normal good) are viewed by consumers to be substitute products. Suppose that the price of Good B falls at the same time that consumer income increases. What is the net effect of these two events on equilibrium in the market for Good A? an increase in equilibrium quantity and an indeterminate effect on price a decrease in both the equilibrium price and quantity an indeterminate effect on quantity but an increase in price an increase in both the equilibrium price and quantity
- There are three consumers in the market for potato chips; Don, Peggy, and Pete. The following table displays each consumers' demand schedule for potato chips. For each blank space, type in the correct answer (write your answer as a number). Price per bag ($) .25 .50 .75 1.00 1.25 1.50 Don's demand 7 6 5 4 3 2 Peggy's demand 10 8 6 4 2 0 Pete's demand 6 5 4 3 2 1 a) At a price of $0.75 per bag, the quantity demanded by the market is [Select] units of potato chips. b) Suppose that the price of potato chips is initially $0.75 and increases to $1.25. There is [Select] by the market that is equal to [Select] units of potato chips. c) Suppose that Pete decides to go on a diet and will no longer purchases potato chips at any price. In addition, after Pete has left the market, suppose that we observe that the quantity of potato chips demanded by the market is equal to 14 units. We can therefore infer that the market price is [Select]Suppose X and Y are substitutes. If the price of Y increases, the demand for X will most likely _______, and the quantity demanded of X will also _______. 1) increase, increase 2) increase, decrease 3) decrease, increase 4) decrease, decrease 5) None of the above.Assume that pickled eggs are an inferior good and its market is currently in equilibrium. What will happen to the equilibrium price and quantity of pickled eggs if consumer incomes increase? Group of answer choices
- "If a good is inferior, a rise in its price will cause people to buy more of it, thus violating the law of demand." True or false? Explain.When there is a change in the price of a related good, demand increases or decreases depending on the relationship between the two goods. Two economic terms describe these two relationships-substitutes and complements. An increase in the price of Good A increases demand for Good B when the two goods are substitutes. An increase in the price of Good A decreases demand for Good B when the two goods are complements.The graph shows the shift in the demand for good B when the price of good A increases depending on whether the two goods are substitutes or complements. Pick from the bold choices below. pls look at the graph. In Mexico, NAFTA had the result of lowering the price of used cars. Consider the effect of the price of used cars on the demand for new cars in Mexico. When the price of used cars in Mexico fell the Mexican demand for new cars (Increase or decrease). This would cause the new car demand curve in Mexico to (Shift right or shift left). The price of new cars in Mexico would…1)Assume that tea and lemons are complements and coffee and tea are substitutes. Say that the government imposes a price ceiling on tea that is below the current market equilibrium price. a) How, if at all, will this affect the price of lemons? b) How, if at all, will this affect the price of coffee?