Question :
121.Ifconsumersoftenpurchasemuffinstoeatwhiletheydrinktheirlattésatlocalcoffeeshops,whatwouldhappentotheequilibriumpriceandquantityoflattésifthepriceofmuffinsrises?
a.Boththeequilibriumpriceand : 1262334
121.Ifconsumersoftenpurchasemuffinstoeatwhiletheydrinktheirlattésatlocalcoffeeshops,whatwouldhappentotheequilibriumpriceandquantityoflattésifthepriceofmuffinsrises?
a.Boththeequilibriumpriceandquantitywouldincrease.
b.Boththeequilibriumpriceandquantitywoulddecrease.
c.Theequilibriumpricewouldincrease,andtheequilibriumquantitywoulddecrease.
d.Theequilibriumpricewoulddecrease,andtheequilibriumquantitywouldincrease.
122.Ifconsumersoftenpurchasemuffinstoeatwhiletheydrinktheirlattésatlocalcoffeeshops,whatwouldhappentotheequilibriumpriceandquantityoflattésifthepriceofmuffinsfalls?
a.Boththeequilibriumpriceandquantitywouldincrease.
b.Boththeequilibriumpriceandquantitywoulddecrease.
c.Theequilibriumpricewouldincrease,andtheequilibriumquantitywoulddecrease.
d.Theequilibriumpricewoulddecrease,andtheequilibriumquantitywouldincrease.
123.Ifconsumersviewcappuccinosandlattésassubstitutes,whatwouldhappentotheequilibriumpriceandquantityoflattésifthepriceofcappuccinosrises?
a.Boththeequilibriumpriceandquantitywouldincrease.
b.Boththeequilibriumpriceandquantitywoulddecrease.
c.Theequilibriumpricewouldincrease,andtheequilibriumquantitywoulddecrease.
d.Theequilibriumpricewoulddecrease,andtheequilibriumquantitywouldincrease.
124.Ifconsumersviewcappuccinosandlattésassubstitutes,whatwouldhappentotheequilibriumpriceandquantityoflattésifthepriceofcappuccinosfalls?
a.Boththeequilibriumpriceandquantitywouldincrease.
b.Boththeequilibriumpriceandquantitywoulddecrease.
c.Theequilibriumpricewouldincrease,andtheequilibriumquantitywoulddecrease.
d.Theequilibriumpricewoulddecrease,andtheequilibriumquantitywouldincrease.
125.Ifscientistsdiscoverthatsteamedmilk,whichisusedtomakelattés,preventsheartattacks,whatwouldhappentotheequilibriumpriceandquantityoflattés?
a.Boththeequilibriumpriceandquantitywouldincrease.
b.Boththeequilibriumpriceandquantitywoulddecrease.
c.Theequilibriumpricewouldincrease,andtheequilibriumquantitywoulddecrease.
d.Theequilibriumpricewoulddecrease,andtheequilibriumquantitywouldincrease.
126.Whatwouldhappentotheequilibriumpriceandquantityoflattésifthecostofproducingsteamedmilk,whichisusedtomakelattés,rises?
a.Boththeequilibriumpriceandquantitywouldincrease.
b.Boththeequilibriumpriceandquantitywoulddecrease.
c.Theequilibriumpricewouldincrease,andtheequilibriumquantitywoulddecrease.
d.Theequilibriumpricewoulddecrease,andtheequilibriumquantitywouldincrease.
127.Whatwouldhappentotheequilibriumpriceandquantityoflattésifcoffeeshopsbeganusingamachinethatreducedtheamountoflabornecessarytoproducethem?
a.Boththeequilibriumpriceandquantitywouldincrease.
b.Boththeequilibriumpriceandquantitywoulddecrease.
c.Theequilibriumpricewouldincrease,andtheequilibriumquantitywoulddecrease.
d.Theequilibriumpricewoulddecrease,andtheequilibriumquantitywouldincrease.
128.Saddleshoesarenotpopularrightnow,soveryfewarebeingproduced.Ifsaddleshoesbecomepopular,thenhowwillthisaffectthemarketforsaddleshoes?
a.Thesupplycurveforsaddleshoeswillshiftright,whichwillcreateashortageatthecurrentprice.Pricewillincrease,whichwilldecreasequantitydemandedandincreasequantitysupplied.Thenewmarketequilibriumwillbeatahigherpriceandhigherquantity.
b.Thesupplycurveforsaddleshoeswillshiftright,whichwillcreateasurplusatthecurrentprice.Pricewilldecrease,whichwillincreasequantitydemandedanddecreasequantitysupplied.Thenewmarketequilibriumwillbeatalowerpriceandhigherquantity.
c.Thedemandcurveforsaddleshoeswillshiftright,whichwillcreateashortageatthecurrentprice.Pricewillincrease,whichwilldecreasequantitydemandedandincreasequantitysupplied.Thenewmarketequilibriumwillbeatahigherpriceandhigherquantity.
d.Thedemandcurveforsaddleshoeswillshiftright,whichwillcreateasurplusatthecurrentprice.Pricewilldecrease,whichwillincreasequantitydemandedanddecreasequantitysupplied.Thenewmarketequilibriumwillbeatalowerpriceandhigherquantity.
129.Themarketfordiamondringsiscloselylinkedtothemarketforhigh-qualitydiamonds.Ifalargequantityofhigh-qualitydiamondsentersthemarket,thenthe
a.supplycurvefordiamondringswillshiftright,whichwillcreateashortageatthecurrentprice.Pricewillincrease,whichwilldecreasequantitydemandedandincreasequantitysupplied.Thenewmarketequilibriumwillbeatahigherpriceandhigherquantity.
b.supplycurvefordiamondringswillshiftright,whichwillcreateasurplusatthecurrentprice.Pricewilldecrease,whichwillincreasequantitydemandedanddecreasequantitysupplied.Thenewmarketequilibriumwillbeatalowerpriceandhigherquantity.
c.demandcurvefordiamondringswillshiftright,whichwillcreateashortageatthecurrentprice.Pricewillincrease,whichwilldecreasequantitydemandedandincreasequantitysupplied.Thenewmarketequilibriumwillbeatahigherpriceandhigherquantity.
d.demandcurvefordiamondringswillshiftright,whichwillcreateasurplusatthecurrentprice.Pricewilldecrease,whichwillincreasequantitydemandedanddecreasequantitysupplied.Thenewmarketequilibriumwillbeatalowerpriceandhigherquantity.
130.Musiccompactdiscsarenormalgoods.Whatwillhappentotheequilibriumpriceandquantityofmusiccompactdiscsifmusiciansacceptlowerroyalties,compactdiscplayersbecomecheaper,morefirmsstartproducingmusiccompactdiscs,andmusicloversexperienceanincreaseinincome?
a.Pricewillfall,andtheeffectonquantityisambiguous.
b.Pricewillrise,andtheeffectonquantityisambiguous.
c.Quantitywillfall,andtheeffectonpriceisambiguous.
d.Quantitywillrise,andtheeffectonpriceisambiguous.