Question

1) If the price of a complement increases, what happens to equilibrium price and quantity of the orginal good?

a) price increases, quantity increases

b) prince increases, quantity decreases

c) price decreases, quantity decreases

d) price decreases, quantity increases

e) none of the above

2) If the price of a substitute increases, what happens to equilibrium price and quantity of the original good?

a) price increases, quantity increases

b)price increases, quantity decreases

c) price decreases, quantity decreases

d) price decreases, quantity increases

e) none of the above

3) If the price of an input increases, what happens to equilibrium price and quantity of the original good?

a) price increases, quantity increases

b) price increases, quantity decreases

c) price decreases, quantity decreases

d) price decreases, quantity increases

e) none of the above

4) If technology increases for a substitute good, what happens to equilibrium price and quantity of the original good?

a) price increases, quantity increases

b) price increases, quantity decreases

c) price decreases, quantity decreases

d) price decreases, quantity increases

e) none of the above

5) If there is a freeze and the other farmers lost part of your corn crop, what happens to equilibrium price and quantity of corn in the corn market?

a) price increases, quantity increases

b) price increases, quantity decreases

c) price decreases, quantity decreases

d) price decreases, quantity increases

e) none of the above