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Principles of Microeconomics

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In the market for sushi, what would happen if some of the sushi restaurants went out of business?
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The diagrams below show the market for salmon sushi rolls.

Suppose consumers learn that salmon increases brain health, and at the same time improvements in water quality increase the salmon population.  Which diagram illustrates what will happen in the market for salmon sushi rolls?

Write the letter representing the correct diagram.



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Consider the market for chocolate ice cream.

Suppose the price of chocolate pudding (a substitute for consumers) increases.

Choose which one of the following diagrams best illustrates how the market for chocolate ice cream will change.



To answer the question write the letter of the diagram only.

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Correct answers will receive 1 mark.  Incorrect answers will

receive -0.75 mark.  An answer left blank will receive 0 marks.  So decide

carefully before you answer.***

The only thing that will cause an increase in quantity demanded is a decrease in the price.

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***

Correct answers will receive 1 mark.  Incorrect answers will

receive -0.75 mark.  An answer left blank will receive 0 marks.  So decide

carefully before you answer.***

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There is soon going to be a decrease in supply of oil and gas because of new stricter environmental regulations.  At the same time, more people are returning to work after a pandemic and are driving their cars more.  What would be the effect of these two events on market for gasoline?

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Correct answers will receive 1 mark.  Incorrect answers will

receive -0.75 mark.  An answer left blank will receive 0 marks.  So decide

carefully before you answer.***

If both demand and supply decrease, the equilibrium quantity will decrease for sure but the equilibrium price may increase, decrease, or remain constant.

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***

Correct answers will receive 1 mark.  Incorrect answers will

receive -0.75 mark.  An answer left blank will receive 0 marks.  So decide

carefully before you answer.***

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