Questions
Questions

ECON 201 Sections 2 & 3, Winter 2025 practice supply demand

Multiple dropdown selections

Prices for both pork and chicken are cut in half. Supply: stay the same Demand: [ Select ] increase stay the same decrease Price: decrease Quantity: [ Select ] increase decrease Determinant/Factor: [ Select ] price of related goods/services for buyers income tastes/preferences buyer expectations number of buyers

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To tackle the scenario, start by separating the effects on each component of the market for pork and chicken when their prices are cut in half. Option 1 (Demand: stay the same) — In economic theory, a price drop for a good generally leads to a higher quantity demanded, all else equal, due to the income and substitution effects. Since the price of the goods themselves has fallen, consumers typically buy more, so the demand column should reflect an increase in quantity demanded rather than remaining unchanged. Therefore this option for demand is unlikely to be corre......Login to view full explanation

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