QUESTION 10 Assume that income of the people buying video games increases and at the same time it is cheaper for the producers for those video games to produce such games. What would we expect to...


QUESTION 10<br>Assume that income of the people buying video games increases and at the same time it is cheaper for the producers for those video games to produce such games. What would we expect to happen in<br>the market?<br>O a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.<br>O b. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.<br>O. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.<br>O d. Equilibrium quantity and price would increase.<br>QUESTION 11<br>Assume that the price of cheese has decreased and the price of garlic bread (a substitute good) has decreased at the same time. How this will affect the market for pizzas?<br>O a. Quantity of pizza would fall, and the effect on price would be ambiguous.<br>O b. Price of pizza would rise, and the effect on quantity would be ambiguous.<br>Oc. Quantity of pizza would rise, and the effect on price would be ambiguous.<br>O d. Price of pizza would fall, and the effect on quantity would be ambiguous.<br>

Extracted text: QUESTION 10 Assume that income of the people buying video games increases and at the same time it is cheaper for the producers for those video games to produce such games. What would we expect to happen in the market? O a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. O b. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. O. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. O d. Equilibrium quantity and price would increase. QUESTION 11 Assume that the price of cheese has decreased and the price of garlic bread (a substitute good) has decreased at the same time. How this will affect the market for pizzas? O a. Quantity of pizza would fall, and the effect on price would be ambiguous. O b. Price of pizza would rise, and the effect on quantity would be ambiguous. Oc. Quantity of pizza would rise, and the effect on price would be ambiguous. O d. Price of pizza would fall, and the effect on quantity would be ambiguous.

Jun 10, 2022
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