BIOL 2051 Chapter : Lab Sep 21 2012
Document Summary
Suppose, as hard as it may be, that spam is a normal good. Suppose further that national income is decreasing while, at the same time, the surgeon general announces that "quitting spam eating now greatly reduces serious risks to your health. " Everything else held constant, the equilibrium price of spam will and the equilibrium quantity transacted will: decrease; decrease, decrease; be ambiguous c. increase; increase, increase; be ambiguous, be ambiguous; decrease, be ambiguous; be ambiguous. One answer will be ambiguous if affects sellers and buyers: suppose a binding(changes behavior/outcome) price ceiling(max price) is imposed on a market which was in equl between the ceiling was imposed. 6%-----------------------> 4: suppose an airline is contemplating raising fares to increase its total revenues. If it believes that increasing dares would increase revenues, it is assuming that the price elasticity of airline travel is than one: supply of; less, supply of; greater, demand for; less, demand for; greater.
