Directions: For each question, draw a market in equilbrium, labeling the initial equilibrium price and equkibrium quantity, Then shift the appropriate curve and label the new equilibrium price and equilibrium quantity. Next, fill in the blaniks to describe what happened. No partial credit will be given. You have 30 minutes to complete this quiz. 1. Subsidies to producers of this good increase: The equilibrium price will___and the equilibrium quantity will___
2. There is a decrease in government restrictions for producers of this good: The equilibrium price will___and the equilibrium quantity will___
3. There is an increase in taxes on the production of this good: The equilibrium price will___and the equilibrium quantity will___
4. There is an increase in preferences for this good: The equilibrium price will___and the equilibrium quantity will___
5. There is an increase in income and this is an inferior good: The equilibrium price will___and the equilibrium quantity will___
6. Buyers expect the price of this good to fall in the future: The equilibrium price will___and the equilibrium quantity will___
7. There is an increase in the price of a relevant resource used to produce this good: The equilibrium price will___and the equilibrium quantity will___
8. The price of a substitute for this good decreases. The equilibrium price will___and the equilibrium quantity will___
9. What will happen if there is an increase in the number of buyers of this good at the same time that subsides to producers of this good decrease and demand and supply shift by equal amounts? The equilibrium price will___and the equilibrium quantity will___
10. What will happen if there is an increase in the price of a complement to this good at the same time that there is an increase in government restrictions for producers of this good, and demand shifts by a larger amount than supply shifts? The equilibrium price will___and the equilibrium quantity will___