Wool and cotton can both be used to manufacture clothing in the garment industry. Suppose that bad weather destroys cotton crops at the same time that the price of wool increases signicantly. What is likely to be the impact on the market for cotton? 0 a decrease in both the equilibrium price and the quantity sold 0 an increase in the equilibrium price and a decrease in the quantity sold 0 an increase in both the equilibrium price and the quantity sold 0 an uncertain effect on the equilibrium quantity but an increase in the equilibrium price Question 7 (1 point} 'E Iii) Listen p ' Which of the following would reduce the supply of computers? 0 higher wage rates for the workers that assemble the computers 0 a reduction in the price of computers 0 a technological improvement that lowers the cost of producing the computers 0 a reduction in the price of computer chips used to produce the computers Ali's Fine Cars nds that a 5 percent increase in the price of a used automobile leads to a percentage decrease in the quantity it is able to sell. What term accurately describes the demand curve for the used cars? 0 inelastic O elastic 0 unit elastic O perfectly,r elastic Question 4 (1 point] If both the supply and demand curves shift to the right, what equilibrium change can we expect? 0 a decrease in the equilibrium quantity sold 0 an increase in the equilibrium quantity sold 0 an increase in the equilibrium price 0 a decrease in the equilibrium price What is the direction of a perfectly inelastic supply curve? O vertical upward sloping to the right O horizontal O downward sloping to the left