Question

Please help with these questions,

Question 23 0.16 pts If the number of buyers in a market increases from 50 to 100, you would expect the equilibrium price to and the equilibrium quantity to , holding all else constant. decrease; decrease increase; increase O decrease: increase ○ increase, decrease O remain the same; remain the same Question 24 0.16 pts Assume that the market for baseballs is in equilibrium. There is a sudden decrease in income throughout the economy. If all else is held constant, we would expect that if baseballs are a(n)_g curve will shift to the good, then the demand causing the equilibrium price and quantity to normal; left; rise normal; right; rise inferior; right; fall O normal; left; fall inferior: left; fall Question 25 0.16 pts If the price and quantity for a normal good, Good X, is $8 and 6 units at the original equilibrium, what is one possibility for the new equilibrium of Good X if we see income increase and all other factors stay constant? O $10 and 2 units $10 and 4 units O $6 and 4 units O $10 and 8 units $6 and 8 units

Answer 1

a) "B"

As there are more buyers in the market that will increase the demand at the given price and shift the demand curve to the right. the new equilibrium will be at a higher price and higher quantity. the answer is "B".

b) "D"

If the baseballs are normal goods then a decrease in the income will decrease the demand and shift the demand curve to the left i.e. at a lower price and lower output.

c) "D"

As good X is a normal good with an increase in the income the price and the consumption both will increase.