Question

Supply falls as does demand g. h. Supply increases while demand falls More firms enter the market and buyer's incomes i. increase for this normal good A new tax is imposed on sellers while the price of a j. complementary good rises Basic Supply and Demand Situations and PPF Applications Please tell whether equilibrium price goes up (T),or down ),or you under each of the ten (10) scenarios below. Also, tell me whet or "you just can't tell for sure" under each of the same ten (10) scenarios belo just can't tell for sure" () her equilibrium quantity goes up, down,

Answer 1

(g)

A fall in supply shifts supply curve leftward, increasing price and decreasing quantity. A fall in demand shifts demand curve leftward, decreasing price and decreasing quantity.

Net effect on price - Can't tell for sure

Net effect on quantity - Down

(h)

A rise in supply shifts supply curve rightward, decreasing price and increasing quantity. A fall in demand shifts demand curve leftward, decreasing price and decreasing quantity.

Net effect on price - Down

Net effect on quantity - Can't tell for sure

(i)

More firms entering the market increases supply. A rise in supply shifts supply curve rightward, decreasing price and increasing quantity. Higher consumer income increases demand. A rise in demand shifts demand curve rightward, increasing price and increasing quantity.

Net effect on price - Can't tell for sure

Net effect on quantity - Up

(j)

A tax on sellers will decrease supply. A fall in supply shifts supply curve leftward, increasing price and decreasing quantity. Higher price of complement good decreases demand. A fall in demand shifts demand curve leftward, decreasing price and decreasing quantity.

Net effect on price - Can't tell for sure

Net effect on quantity - Down