IPhones are mostly made of aluminum. Assume that iPhones are normal goods and that their substitutes are Android phones. What will happen to the market equilibrium for iPhones if the price of Android phones decreases and the price of aluminum increases? Price will increase, and the effect on quantity will be ambiguous. Price will fall, and the effect on quantity will be ambiguous. Quantity will increase, and the effect on price will be ambiguous. Quantity will fall, and the effect on price will be ambiguous.

IPhones are mostly made of aluminum. Assume that iPhones are normal goods and that their substitutes are Android phones. What will happen to the market equilibrium for iPhones if the price of Android phones decreases and the price of aluminum increases? Price will increase, and the effect on quantity will be ambiguous. Price will fall, and the effect on quantity will be ambiguous. Quantity will increase, and the effect on price will be ambiguous. Quantity will fall, and the effect on price will be ambiguous.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 7P

See similar textbooks

Similar questions

Explain why you think that the demand of one product may diminish as prices are increased
Consider two markets: the market for waffles and the market for pancakes. The initial equilibrium for both markets is the same, the equilibrium price is $6.50, and the equilibrium quantity is 35.0. When the price is $9.75, the quantity supplied of waffles is 57.0 and the quantity supplied of pancakes is 101.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for pancakes. Please round to two decimal places. Supply in the market for waffles is
Consider the market for lattes. If consumers view cappuccinos and lattes as substitutes, what would happen to the equilibrium price and quantity of lattes if the price of cappuccinos decreases? Group of answer choices Both the equilibrium price and quantity would increase. Both the equilibrium price and quantity would decrease. The equilibrium price would increase, and the equilibrium quantity would decrease. The equilibrium price would decrease, and the equilibrium quantity would increase.
iPhones are mostly made of aluminum. Assume that iPhones are normal goods and that their substitutes are Android phones. What will happen to the market equilibrium for iPhones if the price of Android phones decreases and the price of aluminum decreases? Price will increase, and the effect on quantity will be ambiguous O Price will fall, and the effect on quantity will be ambiguous. Quantity will increase, and the effect on price will be ambiguous Quantity will fall, and the effect on price will be ambiguous.
What will happen to demand curve for normal goods when there is rise in price of substitute goods
What effect will each of the following have on the demand for small automobiles such as the Mini Cooper and Smart car? Income declines and small autos are an inferior good.
Your research into the vegetable market shows that when the price of vegetables increases by 10%, the quantity demanded of vegetables decreases by 3%. The quantity demanded of meat changes by 18%. You don't know if this is an increase or decrease, but you know that meat and vegetables are substitutes Based on this information, what is the cross-price elasticity of demand for meat?
For consumers, computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?
Find an article in The Wall Street Journal or The Economist that was published after 12/1/23 describing a change in price or quantity or both in some market. Analyze the situation using economic reasoning. A reference must be provided for the article Has there been an increase or decrease in demand? Factors that could shift the demand curve include changes in preferences, changes in income, changes in the price of substitutes or complements, or changes in the number of consumers in the market. Has there been an increase or decrease in supply? Factors that could shift the supply curve include changes in costs of materials, wages, or other inputs; changes in technology; or changes in the number of firms in the market. Draw a supply-and-demand graph to explain this change. Be sure to label your graph and clearly indicate which curve shifts. If done neatly, you can draw the graph by hand and paste it in your document
What happens to demand for normal goods when there is rise in substitute goods
Consider two markets: the market for cat food and the market for dog food. The initial equilibrium for both markets is the same, the equilibrium price is $6.50, and the equilibrium quantity is 35.0. When the price is $8.75, the quantity supplied of cat food is 55.0 and the quantity supplied of dog food is 111.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for dog food. Please round to two decimal places. 1.81 Supply in the market for cat food is There is not enough information to tell which has a higher elasticity. the same elasticity as supply in the market for dog food. more elastic than supply in the market for dog food. less elastic than supply in the market for dog food.
Consider two markets: the market for cat food and the market for dog food. The initial equilibrium for both markets is the same, the equilibrium price is $⁢3.50, and the equilibrium quantity is 31.0. When the price is $10.75, the quantity supplied of cat food is 75.0 and the quantity supplied of dog food is 103.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for dog food. Please round to two decimal places.