1. Business
  2. Economics
  3. uestion 5 10 points knowing that coffee and tea are...

Question: uestion 5 10 points knowing that coffee and tea are...

Question details

uestion 5 (10 points)

Knowing that coffee and tea are substitutes, suppose that the demand for coffee increases and, at the same time, the supply of the coffee decreases. What would surely happen in the tea market?

Question 5 options:

The Demand for tea will go up because the price of coffee went up.

The price of tea will go down because the price of coffee went up.

The supply of tea will go down because the price of coffee went up.

Not enough data exist to conclude what exactly will happen in the tea market.

Question 6 (10 points)

Suppose that the demand decreased for 4K TVs and, at the same time, the supply of 4K TVs increased. What would happen in the market of 4K TVs?

Question 6 options:

Equilibrium price would decrease, but the impact on the equilibrium quantity would be ambiguous.

Equilibrium price would increase, but the impact on the equilibrium quantity would be ambiguous.

Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.

Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

Question 7 (10 points)

Other things remain unchanged, the demand for normal products is expected to increase when buyers' incomes go up.

Question 7 options:

True

False

please answer all the questions and thank you!

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution