Suppose Brad Pitt and Angelina Jolie wear matching platinum jewelry in their new movie. After the movie is released, suppose that consumers increase their demand for the jewelry and at the same time manufacturers increase the supply of the jewelry. As a result
A) the equilibrium quantity will increase, and there is an indeterminate change in the equilibrium price.
B) the equilibrium quantity and price are both indeterminate.
C) the equilibrium quantity will decrease, and the equilibrium price will increase.
D) the equilibrium price and quantity will both decrease.
A
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How are the domestic sellers and buyers of a good affected if a country starts importing the good?
What will be an ideal response?
A) The demand for shoes in Cadbia is given by Qd = 300 - 25P and the supply of shoes is given by Qs = 100 + 25P
If the world price of shoes is $8, will Cadbia import or export shoes? b) The demand for dark chocolates in Cadbia is given by Qd = 300 - 10P and the supply of dark chocolates is given by Qs = 100 + 10 P. If the world price of dark chocolates is $6, will Cadbia import or export chocolates?