what will happen to the equilibrium price and quantity of new cars if the price of gasoline rises, the price of steel rises, public transportation becomes cheaper and more comfortable, and auto-workers negotiate higher wages?
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What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises, the price of steel rises, public transportation becomes cheaper and more comfortable, and the auto
Answer to: What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises, the price of steel rises, public...
Supply and demand
What will happen to the equilibrium price and quantity of new cars if the price of gasoline...
What will happen to the equilibrium price and quantity of new cars if the price of gasoline... Question:
What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises, the price of steel rises, public transportation becomes cheaper and more comfortable, and the auto-workers negotiate nigher wages?
a. Price will fall and the effect on quantity is ambiguous.
b. Price will rise and the effect on quantity is ambiguous.
c. Quantity will fall and the effect on price is ambiguous.
d. Quantity will rise and the effect on price is ambiguous.
Equilibrium Price and Quantity:
The Equilibrium Price and Quantity are given by the point at which the demand and supply curves intersect. When both these curves shift at the same time, the final effect depends on the direction of each shift and how much they have shifted.
Answer and Explanation:
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An increase in steel prices and worker wages will mean a rise in the cost of production of cars. This will lead to a leftward shift in the supply...
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Causes of Supply and Demand Changes in Microeconomics
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Causes of supply and demand changes in microeconomics include factors such as market forces and equilibrium price. Explore the definition of market forces and learn about demand force and supply force along a curve.
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Quiz 2 Flashcards
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Quiz 2
The amount of the good buyers are willing and able to purchase is called the
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quantity demanded
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Suppose today people change their expectations about the future. This change in expectations
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can affect today's demand
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1/25 Created by angelalee411
Terms in this set (25)
The amount of the good buyers are willing and able to purchase is called the
quantity demanded
Suppose today people change their expectations about the future. This change in expectations
can affect today's demand
Ford Motor Company announces that it will offer $3,000 rebates on new Mustangs starting next month. As a result of this information, today's demand curve for Mustangs
Shifts to the left
A higher price for batteries would result in a(n)
decrease in a demand for flashlights
An increase in demand is represented by
a rightward shift of a demand curve.
A decrease in the number of sellers in the market causes
the supply curve to shift to the left.
Lead is an important input in the production of crystal. If the price of lead decreases, other things equal, we would expect the supply of
crystal to increase.
A supply curve slopes upward because
an increase in price gives producers an incentive to supply a larger quantity.
In a market, to find the total amount supplied at a particular price,
we must add up all of the amounts that firms are willing and able to supply at that price.
Another term for equilibrium price is
market clearing price
Refer to Figure 4-7 below. At a price of $35,
there would be a surplus of 400 units.
Refer to Figure 4-7 below. At what price would there be an excess demand amounting to 200 units of the good?
$20
What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea fell?
Price will fall and the effect on quantity is ambiguous.
What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises, the price of steel rises, public transportation becomes cheaper and more comfortable, and auto-workers negotiate higher wages?
Quantity will fall and the effect on price is ambiguous.
Which of these statements does not apply to market economies?
Prices ensure that anyone who wants a product can get it.
In a free, competitive market, what is the rationing mechanism?
price
Which of the following is not a function of prices in a market system?
Prices ensure an equal distribution of goods and services among consumers.
If a binding price ceiling is imposed on the computer market, then
a shortage of computers will develop.
A binding minimum wage
alters both the quantity demanded and quantity supplied of labor.
Refer to Table 6-1 below. Suppose the government imposes a price ceiling of $1 on this market. What will be the size of the shortage in this market?
8 units
Refer to Figure 6-5 below. If the government imposes a price ceiling of $2 on this market, then the result is a
shortage of 60 units of the good.
If a binding price ceiling is imposed on the baby formula market, then
all of the above
Refer to Figure 6-12 below. When the price ceiling applies in this market, and the supply curve for gasoline shifts from S1 to S2,
a shortage will occur at the new market price of P2.
Refer to Figure 6-12 below. When the price ceiling applies in this market, and the supply curve for gasoline shifts from S1 to S2, the resulting quantity of gasoline that is bought and sold is
less than Q3
A minimum wage that is set below a market's equilibrium wage will result in an excess
none of the above are correct
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[Solved] What Will Happen to the Equilibrium Price and Quantity of New
[Solved] What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises,the price of steel rises,public transportation becomes cheaper and more comfortable,and auto workers negotiate higher wages A)price will fall and the effect on quantity is ambiguous B)price will rise and the effect on quantity is ambiguous C)quantity will fall and the effect on price is ambiguous D)quantity will rise and the effect on price is ambiguous
[Solved] What Will Happen to the Equilibrium Price and Quantity of New
Question 84 Multiple Choice Question 84
What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises,the price of steel rises,public transportation becomes cheaper and more comfortable,and auto workers negotiate higher wages
A)price will fall and the effect on quantity is ambiguous
B)price will rise and the effect on quantity is ambiguous
C)quantity will fall and the effect on price is ambiguous
D)quantity will rise and the effect on price is ambiguous
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