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2. The law of supply states that all other things remaining the same: a. as the price of a good increases, supply of the good
2. The law of supply states that all other things remaining the same: a. as the price of a good increases, supply of the good will increase. b. as the price of a good increases, the quantity of the good supplied will increase. c. as the price of a good increases, demand for the good will increase. d. as the price of a good increases, the quantity of the good demanded will decrease.What will happen in the market for wine if the price of cheese increases (wine and cheese are complements)? 2. What will happen in the market for brewed coffee if the price of coffee beans increases? 3. What will happen in the market for lobster if the government rises the income tax and lobsters are a normal good? 4. What will happen in the market for tomatoes if a new study is released that shows that pesticides used on tomatoes contain cancer forming agents. 5. A fall in airfares from UK has raised the demand for hotels rooms in St. Vincent. 6. Government grants a $1 subsidy on each bottle of milk produced. 7. Government collects a $2 sales tax on each bottle of rum
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