Question

Assume that pink salmon is a normal good and consumers' income increases You accurately predict that in the market for pink salmon, there will be a. an increase in the demand of pink salmon, an increase in the price and an increase in quantity supplied b. an increase in the quantity supplied of pink salmon, a reduction in the price and an increase in the quantity demanded a n increase in the demand for pink salmon, a reduction in the price and an increase in the supply d an increase in the supply of pink salmon, an increase in the price and a decrease in the quantity demanded c Assume that pink salmon is an interior good and consumers' income increases You accurately predict that in the market for pink salmon, there will be a a decrease in the demand of pink salmon, a decrease in the price and a decrease in quantity supplied b an increase in the quantity supplied of pink salmon, a reduction in the price and an increase in the quantity demanded a n increase in the demand for pink salmon a reduction in the price and an increase in the supply a n increase in the supply of pink salmon, an increase in the price and a decrease in the quantity demanded c d As per a recent health news report, raw fish and thus, sushi, could be harmful D one's health You accurately predict that in the market for us, there will be a. a decrease in the demand of sush, an increase in the price and a decrease in supply. a n increase in the quantity supplied of sushi, a reduction in the price and an increase in the quantity demanded a decrease in the demand for sushi, a reduction in the price and a decrease in the quantity supplied a n increase in the supply of sush, an increase in the price and a decrease in the quantity demanded c d Apples and oranges are substitute goods in consumption. If a hurricane in Florida destroyed a large portion of the orange crop. a the price of both apples and oranges will rise b the price of both apples and oranges will fall the price of apples will rise and the price of oranges will fall. d the price of apples will fall and the price of oranges will rise. When demand and supply decrease in a market at the same time, you can accurately predict their effect on a equilibrium quantity only b. equilibrium price only. c. both equilibrium price and quantity d. neither one, life is so unpredictable.

Answer 1

16. Ans - a) Increase in demand, increase in price and increase in quantity supplied.

Explanation:

As the income increases, the demand curve of pink salmon will shift to the right because it is a normal good and as demand curve shift right, price increases and as price rises, due to law of supply, quantity supplied increases.

17. Ans - a) Decrease in demand, decrease in price and decrease in quantity supplied.

Explanation:

As the income increases, the demand curve of pink salmon will shift to the left because it is a inferior good and as demand curve shift left, price decreases and as price falls, due to law of supply, quantity supplied decreases.

18. ANs - C) Decrease in demand, decrease in price and decrease in quantity supplied.

19. Ans - A) Price of both apple and oranges rise.

20. Ans - a) equilibrium quantity only.