Market Supply And Demand Schedules For Bicycles Money Worksheet With Answer Key Page 4
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2
3
4Answer:
demand, shifts right, equilibrium price and quantity rise
h.
Consumers' incomes decrease, if bicycles are an inferior good
Answer:
demand, shifts right, equilibrium price and quantity rise
3.
The following questions address a market when both supply and
demand shift.
a.
What would happen to the equilibrium price and quantity in the bicycle
market if there were an increase in both the supply and the demand for
bicycles?
Answer:
equilibrium quantity will rise; the effect on the equilibrium price is ambiguous
b.
What would happen to the equilibrium price and quantity in the bicycle
market if the demand for bicycles increases more than the increase in
the supply of bicycles?
Answer:
equilibrium price and quantity will rise
Practice Questions to accompany Mankiw & Taylor: Economics
4
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