Log in
Economics
1
answer
0
watching
43
views

Which of the following shows the effects on equilibrium price and quantity due to a decrease in supply while holding everything else constant?
(more than 1)

A. a fishing tax is placed on all shrimp and the equilibrium price of shrimp increases while quantity decreases.
B. an oil spill causes several fishermen to leave the shrimp business and the equilibrium price of shrimp increases while quantity increases.
C. an oil spill causes consumers to eat less shrimp and the equilibrium price of shrimp increases while quantity increases.
D. an oil spill causes several fishermen to leave the shrimp business and the equilibrium price of shrimp increases while quantity decreases.
Ā 

Watch
1
answer
0
watching
43
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Vaishnavi Kanukurti
Vaishnavi KanukurtiLv10
24 Sep 2020

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

which of the following correctly states the effects on equilibrium price and quantity,due to an increase in demand, while holding everything else constant?
A.3-D televisions become popular and the equilibrium price and quantity of 3-D televisions increase
B.3-D televisions become unpopular and the equilibrium price and the quantity of 3-D TVs fall
C.Both
D.None of the Above

Type your question here

For each event given below, respond to the following points using the determinants of demand and supply:

A. Determine whether demand or supply changes or if the event instead causes a change in quantity demanded or quantity supplied.

B. State whether the change is an increase or decrease.

C. List the determinant that led you to that conclusion.

Events

1. The price of oil increases because OPEC reduces oil production.

2. The tax on gasoline consumption increases.

3. Firms start producing more fuel efficient vehicles and produce fewer vehicles that use fuel inefficiently.

4. Summer arrives and more people choose to take vacations.

5. The price of gasoline increases.

6. The price of ethanol, a complement good, increases.

7. There is a large oil spill in the Gulf of Mexico.

8. Incomes fall because a recession begins and gasoline is a normal good.

9. Consumers desire more electric powered vehicles instead of gasoline powered vehicles.

10. A new production method allows for twice as much gasoline to be refined per day.

1.
Which of the following is not a characteristic of a market?

A. Markets are physical locations where trading occurs
B. Voluntary exchanges between economic agents
C. Flexible prices
D. There are rules and arrangements for trading


2.
How would a decrease in supply affect the equilibrium price in a market?

A. The equilibrium price would remain the same
B. The equilibrium price decreases.
C. The equilibrium price increases.
D. More information is needed. It may increase, decrease, or remain the same.

How would the equilibrium price in a market be affected if there were a large increase in supply and a small increase in demand?

A. The equilibrium price would remain the same
B. The equilibrium price decreases.
C. The equilibrium price increases.
D. More information is needed. It may increase, decrease, or remain the same.

How would the equilibrium price in a market be affected if there were a large decrease in supply and a small decrease in demand?
A. The equilibrium price would remain the same
B. The equilibrium price decreases.
C. The equilibrium price increases.
D. More information is needed. It may increase, decrease, or remain the same.

4.
What does it mean to say that we are running out of "cheap oil"?
A. That there are declining reserves of low-quality oil, but there is still plenty of high-quality oil remaining.
B. That world demand for oil is declining , which will raise the price of oil in the future.
C. That we will soon seplete all the world's oil reserves, which will cause the price of oil to increase significantly.
D. That oil reserves are becoming more expensive to find and extract over time.

What doese this imply for the price of oil in the future?
A. the demand for oil will increase, which will lead to lower prices in the future.
B. the demand for oil will decrease, which will lead to higher prices in the future.
C. The supply of oil will increase, which will lead to lower prices in the future.
D. The supply of oil will decrease, which will lead to higher prices in the future.


5.
What is meant by holding all else equal and how is this concept used when discussing movements along the demand curve?
A. everything else in the economy is held constant, including the price of the good.
B. All variables that can affect the demand for the good are held constant.
C. All variables in the model are set to equal values.
D. All of the above.

We make the assumption of holding all else equal when considering demand curves since we want to focus on the changes in the quantity demanded that result from changes in [ only the price of a good / only the income of consumers / the price of a good and incomes ]

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in