Answer these MC:
Use the following information to answer the next two questions. Consider a competitive market for grapes with supply and demand given by the following:
QD= 1500 â5p QS=10p+20R
where R is the annual rainfall in inches.
5. An increase in rainfall (R) will - a) shift demand left b) shift demand right C) shift supply left D) shift supply right
6. An increase in rainfall will - a) decrease the equilibrium price and decrease the equilibrium quantity. b) decrease the equilibrium price and increase the equilibrium quantity. c) increase the equilibrium price and decrease the equilibrium quantity. d) increase the equilibrium price and increase the equilibrium quantity.
17) Suppose the price of Apples rises to pA=15 while at the same time Marcusâ income rises such that the original quantity of Apples and Eggs he consumed is still exactly affordable. Then we can conclude that Marcus is
A) no better or worse off from the income and price change. B) better off and will consume more apples and less eggs than before. C) better off and will consume less apples and more eggs than before. D) worse off and will reduce both consumption of eggs and apples.
Answer these MC:
Use the following information to answer the next two questions. Consider a competitive market for grapes with supply and demand given by the following:
QD= 1500 â5p QS=10p+20R
where R is the annual rainfall in inches.
5. An increase in rainfall (R) will - a) shift demand left b) shift demand right C) shift supply left D) shift supply right
6. An increase in rainfall will - a) decrease the equilibrium price and decrease the equilibrium quantity. b) decrease the equilibrium price and increase the equilibrium quantity. c) increase the equilibrium price and decrease the equilibrium quantity. d) increase the equilibrium price and increase the equilibrium quantity.
17) Suppose the price of Apples rises to pA=15 while at the same time Marcusâ income rises such that the original quantity of Apples and Eggs he consumed is still exactly affordable. Then we can conclude that Marcus is
A) no better or worse off from the income and price change. B) better off and will consume more apples and less eggs than before. C) better off and will consume less apples and more eggs than before. D) worse off and will reduce both consumption of eggs and apples.
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