Question 1

The law of demand implies, holding everything else constant, that as the price of ice cream

Accepted Answer

A)  increases, the demand for ice cream will increase. 
B)  increases, the quantity of ice cream demanded will increase. 
C)  decreases, the quantity of ice cream demanded will increase. 
D)  decreases, the demand for ice cream will increase. 
A)  increases, the demand for ice cream will increase. 
B)  increases, the quantity of ice cream demanded will increase. 
C)  decreases, the quantity of ice cream demanded will increase. 
D)  decreases, the demand for ice cream will increase.

Question 2

Explain how it would be possible for the equilibrium price and equilibrium quantity to both increase in the market for motorcycles if consumer preference for motorcycles increases and the number of motorcycle manufacturers decreases.

Accepted Answer

An increase in consumer preference will

The law of demand implies, holding everything else constant, that as the price of ice cream

Explain how it would be possible for the equilibrium price and equilibrium quantity to both increase in the market for motorcycles if consumer preference for motorcycles increases and the number of motorcycle manufacturers decreases.

Economics Foundations and Models

Choices and Trade - Offs in the Market

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency , Government Price Setting and Taxes

Concumer Choice and Behavioural Economics

Technology , Production and Costs

Firms in Perfectly Compitive Markets

Monopoly Markets

Monopolistic Competition : The Competitive Model in More Realistic Setting

Oligopoly : Firms in Less Competitve Markets

The Market for Labour and Other Factors of Production

International Trade

Government Intervention in the Market

Externalities , Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

Exam 3: Where Prices Come Frome : The Interaction of Demand and Supply

The law of demand implies, holding everything else constant, that as the price of ice cream

Explain how it would be possible for the equilibrium price and equilibrium quantity to both increase in the market for motorcycles if consumer preference for motorcycles increases and the number of motorcycle manufacturers decreases.

Economics Foundations and Models

Choices and Trade - Offs in the Market

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency , Government Price Setting and Taxes

Concumer Choice and Behavioural Economics

Technology , Production and Costs

Firms in Perfectly Compitive Markets

Monopoly Markets

Monopolistic Competition : The Competitive Model in More Realistic Setting

Oligopoly : Firms in Less Competitve Markets

The Market for Labour and Other Factors of Production

International Trade

Government Intervention in the Market

Externalities , Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters