Answer
(a) The supply will decrease; hence equilibrium quantity decreases and equilibrium price increases.
(b)The equilibrium price decreases and equilibrium quantity decreases.
(c)The equilibrium quantity increases and equilibrium price decreases.
(d) The equilibrium quantity increases and equilibrium price is indeterminate.
(e) The equilibrium quantity increases and equilibrium price increases.
(f) The equilibrium quantity is indeterminate and equilibrium price decreases.
(g) The equilibrium and quantity are indeterminate and equilibrium price increases.
(h) The equilibrium quantity decreases and price is indeterminate.
Work Step by Step
(a) The supply will decrease; hence equilibrium quantity decreases and equilibrium price increases.
(b)The equilibrium price decreases and equilibrium quantity decreases.
(c)The equilibrium quantity increases and equilibrium price decreases.
(d) The equilibrium quantity increases and equilibrium price is indeterminate.
(e) The equilibrium quantity increases and equilibrium price increases.
(f) The equilibrium quantity is indeterminate and equilibrium price decreases.
(g) The equilibrium and quantity are indeterminate and equilibrium price increases.
(h) The equilibrium quantity decreases and price is indeterminate.
