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Economics
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21 Oct 2020

An increase in the availability of substitute goods will cause demand for a good to ______ and its equilibrium price to ______

    1. Increase; increase

    2. Increase; decrease

    3. Decrease; increase

    4. Decrease; decrease

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Macroeconomics
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Basic Demand-Supply
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Kristelle Balando
Kristelle BalandoLv10
21 Oct 2020

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Related questions

A. In the market for a good, there is an increase in demand and a decrease in supply. You would expect the equilibrium price to _____ and the equilibrium quantity sold to ____.

no change: increase

increase: uncertain increase :

no change uncertain: increase

B. In the market for beef, a severe drought increases the price of corn (animal food). You would expect the equilibrium price of beef to _____ and the equilibrium quantity sold to ____.

increase: decrease

decrease: decrease

increase: increase

decrease: increase

C. In the market for pizza, five new restaurants open. You would expect the equilibrium price to _____ and the equilibrium quantity sold to ____.

increase: increase

increase: decrease

decrease: increase

decrease: decrease

D. In the pizza market, the price of hamburgers (a substitute for pizza) has gone up. You would expect the equilibrium price of a pizza to _____ and the equilibrium quantity of pizza sold to ____.

increase: increase

decrease: increase

decrease: decrease

increase: decrease

If the price of a good increases then, then

a. the demand for complementary goods will increase.

b. the demand for the good will increase.

c. the demand for substitute goods will increase.

d. the demand for the good will decrease.

 

Suppose an excise tax is imposed on product X. We expect this tax to:

a. increase the demand for complementary good Y and decrease the demand for substitute product Z.

b. decrease the demand for complementary good Y and increase the demand for substitute product Z.

c. increase the demands for both complementary good Y and substitute product Z.

d. decrease the demands for both complementary good Y and substitute product Z.

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