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 demand.
B.
increase in demand.
C.
decrease in quantity demanded.
D.
increase in quantity demanded.
Part 2b. There is an increase in the price of carry cases for wireless earbuds.
This would likely cause a decrease in demand for wireless earbuds.
Equilibrium quantity would
Equilibrium quantity would not be directly affected by an increase in the price of carry cases for wireless earbuds. Equilibrium quantity is determined by the intersection of supply and demand curves, and changes in the price of carry cases would only affect demand. Therefore, the equilibrium quantity would remain unchanged unless there are other factors in the market that change supply or demand.
it either increase or decrease
Apologies for the confusion. You are correct, an increase or decrease in the price of carry cases for wireless earbuds can affect the equilibrium quantity.
If the price of carry cases increases, it could potentially decrease demand for wireless earbuds, leading to a decrease in the equilibrium quantity. On the other hand, if the price of carry cases decreases, it could increase demand for wireless earbuds, resulting in an increase in the equilibrium quantity.
Therefore, an increase or decrease in the price of carry cases can potentially impact the equilibrium quantity of wireless earbuds.
Equilibrium price would increase or decrease
Apologies for the earlier confusion. If there is an increase in the price of carry cases for wireless earbuds, it is likely to have no direct effect on the equilibrium price of the earbuds themselves. The equilibrium price is determined by the intersection of supply and demand curves for wireless earbuds, and changes in the price of carry cases would only affect the demand for earbuds.
However, if the increase in the price of carry cases decreases the demand for wireless earbuds, it could potentially lead to a decrease in the equilibrium price. Conversely, if the increase in the price of carry cases does not significantly impact demand for earbuds, there may be no change in the equilibrium price.
Therefore, the impact of an increase in the price of carry cases on the equilibrium price of wireless earbuds is dependent on the magnitude of the change in demand resulting from the price increase.
b. There is a decrease in the price of devices used to charge wireless earbuds.
Part 6
A.
decrease in quantity demanded.
B.
increase in quantity demanded.
C.
increase in demand.
D.
decrease in demand.
Part 6b. There is a decrease in the price of devices used to charge wireless earbuds.
This would likely lead to an increase in the quantity demanded of wireless earbuds.
wrong answer.
A change in a good's own price leads to a change in quantity demanded for any given demand curve, other things held constant. A change in any of the ceteris paribus conditions for demand leads to a change in demand which results in a movement (shift) of the curve. In this case, the good's own price did not change.
Apologies for the incorrect response. You are absolutely correct.
If there is a decrease in the price of devices used to charge wireless earbuds, it would not directly affect the quantity demanded of the earbuds. The quantity demanded is determined by factors such as price, income, consumer preferences, and more, but a change in the price of devices used to charge earbuds does not impact the demand for the earbuds themselves.
Therefore, the correct answer is C. There would be no change in demand for wireless earbuds due to a decrease in the price of devices used to charge them.
Equilibrium quantity would a. increase or b. decrease
If there is a decrease in the price of devices used to charge wireless earbuds, it can potentially increase the demand for wireless earbuds. This increase in demand can lead to an increase in the equilibrium quantity of wireless earbuds.
Therefore, the answer is a. The equilibrium quantity would increase.
Equilibrium price would a. increase or b. decrease
If there is a decrease in the price of devices used to charge wireless earbuds, it can potentially increase the demand for wireless earbuds. An increase in demand, all else being equal, typically leads to an increase in equilibrium price.
Therefore, the answer is a. The equilibrium price would increase.
c. 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.
Part 9a. There is an increase in the number of consumers of wireless earbuds.
An increase in the number of consumers of wireless earbuds would lead to an increase in demand for the product. Therefore, the correct answer is A. There would be an increase in demand.
Equilibrium quantity would a. increase or b. decrease
If there is an increase in the number of consumers of wireless earbuds, it would likely lead to an increase in the demand for wireless earbuds. An increase in demand, all else being equal, typically leads to an increase in the equilibrium quantity of the product.
Therefore, the answer is a. The equilibrium quantity would increase.
quilibrium price would a. increase or b. decrease
If there is an increase in the number of consumers of wireless earbuds, it would likely lead to an increase in the demand for wireless earbuds. An increase in demand, if supply remains constant, typically leads to an increase in the equilibrium price of a product.
Therefore, the answer is a. The equilibrium price would increase.
d.
A booming economy increases the income of the typical buyer of wireless earbuds (this
is a normal good).
Part 12
A.
increase in demand.
B.
increase in quantity demanded.
C.
decrease in demand.
D.
decrease in quantity demanded.
Part 12a. A booming economy increases the income of the typical buyer of wireless earbuds (this is a normal good).
If a booming economy increases the income of the typical buyer of wireless earbuds, it is likely to lead to an increase in the demand for wireless earbuds. When people have higher incomes, they are more likely to spend on normal goods, such as wireless earbuds.
Therefore, the correct answer is A. There would be an increase in demand.
e. Consumers of wireless earbuds anticipate that the price of this good will decline in the future.
Part 15
A.
increase in demand.
B.
increase in quantity demanded.
C.
decrease in demand.
D.
decrease in quantity demanded.
Part 15b. Consumers of wireless earbuds anticipate that the price of this good will decline in the future.
If consumers of wireless earbuds anticipate that the price of the good will decline in the future, it is likely to lead to an increase in the quantity demanded in the present. Consumers may want to take advantage of the expected lower prices and purchase more of the product now.
Therefore, the correct answer is B. There would be an increase in quantity demanded.