Question

Hi I feel so confused about these questions, can anyone help?

Answer 1

5. Ans: Increase in population size

Explanation:

Except ' Increase in population size', other factors will lead to increase in supply of cherries. Increase in population size will lead go increase in demand and not supply. Thus, first option is correct answer.

Answer to 2nd question: There is excess demand of 70,000 kg, and therefore upward pressure on equilibrium price.

Explanation:

At price of $12, Quantity demanded is 180,000 kg and quantity supplied is 110,000 kg. So, there a excess demand of 70,000 kg. This excess demand will lead to increase in price of the good.

Thus, last option is correct answer.

4. Ans: The new equilibrium price will be $18

Explanation:

When the quantity supplied increases by 20,000 kg at all prices, at a price of $18, quantity supplied will be 150,000 ks. And at price of $18, quantity demanded is 150,000 kg. So, the equilibrium occurs at the point where quantity supplied is equal to quantity demanded. Thus, the equilibrium price will be $18.

Thus, last option is correct answer.