Assume there is a decrease in the price of a complement and a decrease in the number of firms. How would yo summarize the results for equilibrium price and equilibrium quantity?
The equilibrium price will decrease but any change in the equilibrium quantity is uncertain.
The equilibrium quantity will decrease but any change in the equilibrium price is uncertain.
The equilibrium quantity will increase but any change in the equilibrium price is uncertain.
The equilibrium price will increase but any change in the equilibrium quantity is uncertain.
Question 6
A firm sells a good that has a lot of close substitutes and it is extremely expensive. The good is likely to have demand that is and the price elasticity of demand (in absolute value) would be
elastic, less than one
elastic, greater than one
inelastic, greater than one
inelastic, less than one
Assume there is a decrease in the price of a complement and a decrease in the number of firms. How would y summarize the results for equilibrium price and equilibrium quantity?
The equilibrium price will decrease but any change in the equilibrium quantity is uncertain
@ The equilibrium quantity will decrease but any change in the cquilibrium price is uncertain
O The equiibrium quantity will increase but any change in the equilibrium price is uncertain
O The equilibrium price will increase but any change in the cquilibrium quantity is uncertain
Question 6
1
A frm sells a good that has a lot of dose substitutes and it is extremely expensive.The good is likely to have demand that is and the price elasticity of demand (in absolute value) would be
elastic,less than one
elastic,greater than one
O inelastic,greater than one
inelastic,less than one