Author Question: After a hurricane in Florida knocked out the regional water supply for several days, the demand for ... (Read 45 times)

kellyjaisingh · **on:** Jun 30, 2018

After a hurricane in Florida knocked out the regional water supply for several days, the demand for bottled water increased sharply. In a market economy, how will this increase in demand affect the equilibrium price and quantity of bottled water?
a. Price will increase, and quantity will decrease.
b. Price will decrease, and quantity will decrease.
c. Price will decrease, and quantity will increase.
d. Price will increase, and quantity will increase.

Question 2

Each year around Valentine's Day, we would expect:
a. the demand for roses to increase. b. the price of roses to increase.
c. the quantity of roses sold to increase. d. all of these.