ECON 1204-001 Spring 2019 a A number of firms left the market. b. A number of buyers entered the market, and a number of firms entered the market. c. The price of a complement of this good increased. d. The price of a substitute of this good increased. e. The price of this good decreased. 5. If all else is held constant, what would happen to the equilibrium price and quantity of iPhones if the price of an Android phone decreased? a. They would both increase. b. They would both decrease. c. One would increase and one would decrease, but we don't know which would do what d. The price would increase and the quantity would decrease. e. The price would decrease and the quantity would increase. 6. Assume that the market for baseballs is in equilibrium. There is a sudden decrease in income throughout the economy. If all else is held constant, we would expect that if baseballs are a(n) good, then the demand curve will shift to the causing the equilibrium price and quantity to inferior, left, fall Principles of Macroeconomics b. normal; right; rise c. inferior, right, fall d. normal, left; fall e. normal; left; rise Question 2: (10 points) Suppose that Sony decides to decrease the price of the Blu-ray player, for which there are many Blu-ray videos available. Based on Sony's decision, what can we infer? Choose one or more and explain your choice using words and/or graphs. A The market demand for Blu-ray videos will increase. B. The market demand for the Blu-ray systems will increase. The quantity of Blu-ray systems demanded will increase 1. Computers 2. Labor Question 3: (10 points) You publish a magazine for calculator collectors. To produce and distribute this magazine, you use a number of inputs: 3. Paper 4. Postage 5 Staplers if the price of postage goes up and there are no other changes, what is the consequence? ECON 1204-001 Spring 2019 a A number of firms left the market. b. A number of buyers entered the market, and a number of firms entered the market. c. The price of a complement of this good increased. d. The price of a substitute of this good increased. e. The price of this good decreased. 5. If all else is held constant, what would happen to the equilibrium price and quantity of iPhones if the price of an Android phone decreased? a. They would both increase. b. They would both decrease. c. One would increase and one would decrease, but we don't know which would do what d. The price would increase and the quantity would decrease. e. The price would decrease and the quantity would increase. Principles of Macroeconomics 6. Assume that the market for baseballs is in equilibrium. There is a sudden decrease in income throughout the economy. If all else is held constant, we would expect that if baseballs are a(n) good, then the demand curve will shift to the causing the equilibrium price and quantity to &inferior, left, fall b. normal; right; rise c. inferior, right, fall d. normal, left; fall e normal; left; rise Question 2: (10 points) Suppose that Sony decides to decrease the price of the Blu-ray player, for which there are many Blu-ray videos available. Based on Sony's decision, what can we infer? Choose one or more and explain your choice using words and/or graphs. A The market demand for Blu-ray videos will increase. B. The market demand for the Blu-ray systems will increase. The quantity of Blu-ray systems demanded will increase 1. Computers 2. Labor Question 3: (10 points) You publish a magazine for calculator collectors. To produce and distribute this magazine, you use a number of inputs: 3. Paper 4. Postage 5 Staplers if the price of postage goes up and there are no other changes, what is the consequence?