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