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Damm
1 month ago
15

When the supply of bubble gum increases while the demand for bubble gum decreases, the equilibrium ________ of bubble gum will d

efinitely ________, ceteris paribus.a. price; increaseb. price; decreasec. quantity; increased. quantity; decrease
Business
2 answers:
Free_Kalibri [3.7K]1 month ago
4 0

Response:

The right choice is option b.

Analysis:

The equilibrium price and quantity for a product emerge from the interplay between its demand and supply curves.  

An uptick in supply results in a rightward shift of the supply curve, whereas a decrease in demand results in a leftward move in the demand curve.  

Consequently, the price of the product will decrease. Meanwhile, the alteration in quantity is contingent on the scale of changes in both demand and supply.

arsen [3.4K]1 month ago
4 0

Response: quantity; decrease

Analysis:

A concurrent decline in buyers' willingness and capacity to purchase at the current price, shown by a left shift of the demand curve, alongside an increase in sellers' willingness and capability to sell at that price, demonstrated by a right shift of the supply curve. The combined effect of these shifts leads to a definitive reduction in equilibrium quantity and a decrease in equilibrium price.

A decrease in demand results from modifications to any of the five determinants of demand. Conversely, an increase in supply arises from changes to any of the five supply determinants. Alone, a demand decline brings about a reduction in equilibrium quantity and price. In contrast, an increase in supply results in a higher equilibrium quantity and a lower price. A simultaneous demand drop and supply increase undoubtedly lead to a lower price; however, the impact on quantity remains uncertain. It could either rise or fall, influenced by the magnitude of change in demand and supply shifts.

a demand decrease results in a decrease in equilibrium quantity and a decrease in equilibrium price

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