In the market for chewing gum the current price is 50

186. In the market for chewing gum, the current price is 50 cents per pack and 100,000 packs are sold.
Which of the following events would lead to a new equilibrium price of 60 cents and quantity of
90,000 packs?
a. an increase in the price of other kinds of candy
b. an increase in the price of the ingredients used to make chewing gum
c. a decrease in the number of young people in the population
d. an agreement by workers in the chewing gum industry to work for lower wages
e. an increase in income
ANS: B PTS: 1 DIF: Difficulty: Challenging
NAT: BUSPROG: Reflective Thinking STA: DISC: Markets, market failure, and externalities
TOP: Shifts of the Supply Curve KEY: Bloom's: Application
187. Along a given demand curve, a decrease in supply will typically
188. If supply decreases along a given demand curve,

189. If the market for beef cattle was initially in equilibrium, an increase in the price of the feed grains used
to fatten cattle would cause
190. If supply increases and demand decreases, then equilibrium price will fall.
a. True
b. False
ANS: A PTS: 1 DIF: Difficulty: Challenging
NAT: BUSPROG: Analytic STA: DISC: Markets, market failure, and externalities
TOP: Simultaneous Shifts of Demand and Supply Curves KEY: Bloom's: Comprehension