Think about the quantity of plums and apples that people want to buy in a market. If the price of plums doubled and the price of apples stayed the same, what would happen to these quantities?

If both demand and supply change simultaneously, the effect on either price or quantity will be .

If the price of a product were to go down, what would happen to the quantity demanded of that product?Multiple ChoiceQuantity would increase.Quantity would decrease.Demand would increase.Demand would decrease.Demand and quantity would stay the same.

Suppose that Cocoa prices are increasing amid widespread flooding in some of the world’s main growing regions leading to increased input costs for chocolate producers. At the same time there is a fall in consumer income. Chocolate is a normal good.What will happen to the equilibrium price and quantity in the market for chocolates following these two events?Question 6AnswerA.Price will decrease; quantity will decrease.B.Price will increase; the effect on quantity is ambiguous.C.The effect on price is ambiguous; quantity will increase.D.Price will increase; quantity will decrease.E.The effect on price is ambiguous; quantity will decrease.

Question 11The market for apples is in equilibrium at a price of $0.50 per pound. If the government imposes a price ceiling in the market at a price of $0.40 per pound, then:1 pointquantity demanded will decrease.the price ceiling will not affect the market price or output.there will be a shortage of the good.quantity supplied will increase.

What happens when supply and demand both increase?A.Quantity increases.B.Quantity decreases.C.Price increases.D.Price decreases.