I have just completed a study sheet and would like to double check a few of my a

Question

I have just completed a study sheet and would like to double check a few of my answers...

1) If the price of a complement increases, what happens to equilibrium price and quantity of the original good, if it is a normal good?

2) If the price of a substitute increases, what happens to equilibrium price and quantity of the original good, if it is a normal good?

3) If the price of an input increases, what happens to equilibrium price and quanitity of the original good?

4) If technology increases for a substitute good, what happens to equilibrium price and quantity of the original good, if it is a normal good?

5) If there is a freeze and you and the other farmers lost part of your corn crop, what happens to equilibrium price and quantity of corn in the corn market?

6) True or False? A quota can be set so that the effect on price and quantity is the same as with a tariff.

Explanation / Answer

1. I dont know

2. Decreases

3.Decreases

4. Increses

5. Decreses

6. True

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