In the market for wireless earbuds (a normal good), indicate whether the following events would cause an "increase or a decrease in demand"
or an "increase or a decrease in the quantity demanded."
Part 2
a. There is an increase in the price of carry cases for wireless earbuds.
Part 3
A.
decrease in quantity demanded.
B.
increase in demand.
C.
decrease in demand.
D.
increase in quantity demanded.
A. decrease in quantity demanded.
Equilibrium quantity would
refer to the quantity of a good or service that is bought and sold in the market at the given equilibrium price. It is the point where the demand of a product is equal to its supply, and there is no shortage or surplus. At equilibrium quantity, the quantity demanded by buyers is exactly equal to the quantity supplied by sellers.
There is an increase in the number of consumers of wireless earbuds.
Part 9
A.
increase in demand.
B.
increase in quantity demanded.
C.
decrease in demand.
D.
decrease in quantity demanded.
A. increase in demand.
For Part 2, an increase in the price of carry cases for wireless earbuds would typically result in a decrease in the quantity demanded, as consumers would be less willing to purchase the earbuds if the associated accessories become more expensive. Therefore, the answer would be:
A. decrease in quantity demanded.
To determine whether an event would cause an increase or a decrease in demand or quantity demanded for wireless earbuds, we need to understand the difference between demand and quantity demanded.
Demand refers to the overall desire and willingness of consumers to purchase a product at various prices, while quantity demanded refers specifically to the quantity of a product consumers are willing to buy at a given price.
In this case, the event is an increase in the price of carry cases for wireless earbuds. To determine its effect on demand or quantity demanded, we need to consider the relationship between carry cases and wireless earbuds.
If carry cases are considered complements to wireless earbuds, meaning they are typically purchased together, an increase in the price of carry cases would likely decrease the demand for wireless earbuds. This is because consumers would be less willing to buy both the earbuds and the more expensive carry cases.
On the other hand, if carry cases are seen as independent or unrelated to the purchase of wireless earbuds, an increase in their price would have little to no effect on the demand for earbuds.
Therefore, based on the given information, the correct answer would be C. decrease in demand.