Determine the effect upon equilibrium price and quantity sold if the following changes occur in a particular market:

a. Consumers’ income increases and the good are normal.

b. The price of a substitute good (in consumption) increases.

c. The price of a substitute good (in production) increases

d. The price of a complement good (in consumption) increases

e. The price of inputs used to produce the good increases.

f. Consumers expect that the price of the good will increase in the near future.

g. It is widely publicized that consumption of the good is hazardous to health.

h. Cost reducing technological change takes place in the industry.

For each of the pair of events indicated below, perform qualitative analysis to predict the direction of change in either the equilibrium price or equilibrium quantity. Explain why the change is indeterminate.

A. Both A and h conditions occur simultaneously.

B. Both d and e conditions occur simultaneously

C. Both d and h conditions occur simultaneously.

D. Both f and c conditions occur simultaneously.

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Determine the effect upon equilibrium price and quantity sold if the following changes occur in a particular market a Consumers income increases and the good is normal If the income increases and good ... View the full answer