Question

Please help with these questions,

Question 5 0.16 pts When firms in a market expect the price of their products to rise, the supply curve of their goods causing the equilibrium price to O decreases; rise increases; rise and the equilibrium quantity to fall decreases; fall increases; fall O increases; rise Question 6 0.16 pts Taxes cause the equilibrium price of a good to Ogo up only for producers. O decrease O go down only for consumers O increase. remain the same Question 7 0.16 pts According to a supply and demand model for apples, if the average household income decreases at the same time 10 apple orchards go out of business, one would expect the equilibrium O quantity of apples in the market to decrease and the equilibrium price of apples to be indeterminate. O price of apples to increase and the equilibrium quantity of apples in the market to decrease. O quantity of apples in the market to decrease and the equilibrium price of apples to stay the same. O price of apples to be indeterminate and the equilibrium quantity of apples in the market to increase. quantity of apples in the market to be indeterminate and the equilibrium price of apples to increase.

Answer 1

a) "B"

When the firm expect the price to rise they will decrease the supply and that will lead to a higher price and lower the quantity and the supply curve will shift to the left. the answer is "B".

b) "D"

A tax on the good will increase the price of the good.

c) "A"

A decrease in the income will decrease the demand for apple and the quantity will fall with the price. decrease in apple orchards will again decrease the quantity and cause the price to increase. overall the quantity will fall but the price is indeterminate.

d) "A"

Each buyer and each seller should be insignificant relative to the market so that they cannot influence in the market.

e) "C"

Cotton Gin is a new technology that will decease the price as the production has increased and increase the quantity.

f) "A"

When the supply and demand both change that is a two fold change.