Recent rains increase the demand for kayaks, as paddlers want to take advantage of the exciting river conditions on the Oconee R
iver. New plastics technology makes kayaks less expensive to make. As a result, one should expect: a. Equilibrium price to rise, but equilibrium quantity to be indeterminate from the information given.
b. Equilibrium price to fall, but equilibrium quantity to be indeterminate from the information given.
c. Equilibrium price to be indeterminate from the information given, but equilibrium quantity to rise.
d. Equilibrium price to be indeterminate from the information given, but equilibrium quantity to fall.
Equilibrium price to be indeterminate from the information given, but equilibrium quantity to rise.
Explanation:
The recent rains resulted in an increase in demand for kayaks so the equillibrum quantity demanded will rise. Supply will also rise to meet the increased demand.
However we are unable to determine if the price will rise or fall with the given information.
Plastic is cheaper now so kayaks will also be cheaper. On the other hand increase in demand naturally causes an increase in price. So the cheaper price of kayaks will need to be compared with price increases as a result of increased demand to determine if equillibrum price will rise or fall.
well with buying a home you are stuck with it you cant just move out but with renting you can say ohh im moving and you can give them your key and get out its really not that bard