MicroeconorQSupply and Demand Flashcard x paeducourses104962

MicroeconorQSupply and Demand Flashcard x pa.edu/courses/1049629/quizzes/1767252/take commu YouTube .:. MindTap SMathAS eChegg Question 15 5 pts If the demand and supply of umbrellas both increase (shift right), the net effect of both shifts would be equilibrium quantity change is indeterminant but price rises O equilibrium quantity increases buy price decreases Oequilibrium price and quantity both increase Oequilibrium quantity rises but price change is indeterminant Question 16 5 pts In the market for large screen TV\'s, what is the most likely reason for the drop in prices of large screen TVs? More television show and movies available for viewers. Technological improvements lowering the cost to make TVs O Fewer factories producing large screen televisions O A higher demand by customers for large screenTVs 16

Solution

15) d) Equilibrium quantity rises but price change is indeterminant. When demand and supply both increase and shifts right the equilibrium price remains unchanged and equilibrium quantity will increase.

16) b) technological improvements lowering the cost to make TV\'s. The panels prices are falling constantly and there is a drop in TV business. Hence the rates of large TV\'s fall.