Author Question: Along a given demand curve, a decrease in supply will typically a. decrease price, but the change ... (Read 77 times)

ereecah · **on:** Jul 1, 2018

Along a given demand curve, a decrease in supply will typically
a. decrease price, but the change in quantity could be in either direction
b. increase price and decrease the quantity
c. decrease price but leave quantity unchanged
d. decrease both quantity and price
e. increase both quantity and price

Question 2

In the market for chewing gum, the current price is 50 cents per pack and 100,000 packs are sold. Which of the following events would lead to a new equilibrium price of 60 cents and quantity of 90,000 packs?
a. an increase in the price of other kinds of candy
b. an increase in the price of the ingredients used to make chewing gum
c. a decrease in the number of young people in the population
d. an agreement by workers in the chewing gum industry to work for lower wages
e. an increase in income