If the price of film increases at the same time the cost of camera production increases, what will happen to the equilibrium price and quantity in the camera market?
A) Price will increase, quantity will decrease
B) Price will increase, quantity will increase
C) Price will decrease, quantity will decrease
D) Price will decrease, quantity will increase
E) The new equilibrium price and quantity cannot be determined
Answer: E) The new equilibrium price and quantity cannot be determined
You might also like to view...
As the interest rate rises, it is possible that net capital outflow could move from a positive to a negative value
a. True b. False Indicate whether the statement is true or false
An increasing-cost industry is associated with:
A. a perfectly elastic long-run supply curve. B. an upsloping long-run supply curve. C. a perfectly inelastic long-run supply curve. D. an upsloping long-run demand curve.
If the cross elasticity of demand for potato chips and pretzels equals 1.5,
a. potato chips and pretzels must both be luxury goods. b. either potato chips or pretzels must be a luxury good, and both may be luxury goods. c. potato chips and pretzels must be substitutes. d. potato chips and pretzels must be complements.
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model? a. The quantity of real loanable funds per time period rises and
GDP Price Index rises. b. The quantity of real loanable funds per time period falls and GDP Price Index falls. c. The quantity of real loanable funds per time period rises and GDP Price Index falls. d. The quantity of real loanable funds per time period and GDP Price Index remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.