05 Jun Question 10 questions Note about how to answer the questions:
Question
10 questions
Note about how to answer the questions:
The first part of the answer is only one of these options:
•decrease in supply
•increase in supply
•decrease in demand
•increase in demand
The second part is one of the options below (if you choose change in demand, then the 2nd part must be a demand determinant and the same for supply):
Demand Determinants
•Consumer tastes & preferences
•Number of buyers in the market
•Change in consumer income
•Change in price of a related good (specify substitute or complementary good)
•Consumer expectations
Supply Determinants
•Resource prices
•Improvements in technology
•Taxes & Subsidies
•Prices of other goods
•Producer expectations
Number of sellers in the market
For each scenario in the attached document, identify whether there has been an increase in demand, a decrease in demand, an increase in supply or a decrease in supply and state which determinant accounts for the shift. An example is below.
Example: Corporate income tax rates for businesses increase. How will this affect the market for
most goods and services?
Decrease in supply Change in taxes or subsidies
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