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Question: 1 10 pts the following questions deal with the market...

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1. (10 pts) The following questions deal with the market for footware (shoes).

In column I, answer with the following key:

A: equilibrium price increases

B: equilibrium price decreases

In column II, answer with the following key:

A: equilibrium quantity increases

B: equilibrium quantity decreases

Col. I Col. II

____ ____ a. The population increases.

____ _____ b. Consumer incomes decrease (footware are normal goods).

____ _____ c. A new technology makes it cheaper to manufacture footware.

____ ______ d. The price of leather falls (leather is an input into making footware).

____ ______ e. A negative supply shock hits the footware market.

___ ______ f. Consumers expect footware prices to rise in the future.

____ ______ g. The number of firms manufacturing footware increases.

____ ______ h. Taxes are reduced on footware manufacturers.

____ ______ i. Subsidies are decreased for footware manufacturers.

____ _____ j. Manufacturers find it more profitable to make clothing rather than footware.

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