Question

10 Label each of the following scenarlos with the correct comblnation of price change and quantity change. In some scenarios, It may not be possible from the information given to determine the direction of a particular price change or a particular quantity change. We will symbolize those cases as, respectively, "P?" and "Q?". 0.33 points Scenario Price Quantity On a hot day, both the demand for lemonade and the supply of lemonade Click to select)(Click to select) ncrease eBook On a cold day, both the demand for ice cream and the supply of ice cream ecrease (Click to select) # (Click to select Ask When Hawall's Mt. Kllauea erupts violently, the demand on the part of tourists or sightseeing flights increases but the supply of pilots willing to provide hese dangerous flights decreases. Print Click to select) 수 (Click to select) In a hot area of Arlzona where they generate a lot of thelr electricity with ind turbines, the demand for electricity falls on windy days as people switch f their air conditioners and enjoy the breeze. But at the same time, the amount of lectricity supplled increases as the wind turbines spin faster Click to select) (Click to select) Increasc Decrease Q?

Answer 1

Scenario	Price	Quantity
a. On a hot day, both the demand for lemonade and the supply of lemonade increase.	P?	Increase
b. On a cold day, both the demand for ice cream and the supply of ice cream decrease.	P?	Decrease
c. When Hawall’s Mt. Kilauea erupt violently, the demand on the part of tourists for sightseeing flights increase but the supply of pilots willing to provide these dangerous flights decrease.	Increase	Q?
d. In a hot area of Arizonia where they generate a lot of their electricity with wind turbines, the demand for electricity falls on windy days as people switch off their air conditioners and enjoy the breeze. But at the same time, the amount of electricity supplied increase as the wind turbines spin faster.	Decrease	Q?

With the movement of demand and supply, price and the quantity traded also changes. The demand may change while supply remaining constant or the supply may change while demand reminding the changes or both supply and demand may change simultaneously. These changes make changes in the price and quantity traded in a market.

a. When both demand and supply increase the quantity traded increase. But the price may increase or decrease depending upon whether the increase in one variable is greater than or less than the other. .

b. When both demand and supply decrease the quantity traded decrease. But the price may increase or decrease depending upon whether the increase in one variable is greater than or less than the other.

c. When demand increase and supply decrease the price will increase. But movement of quantity traded is uncertain.

d. When demand decrease and supply increase the price will decrease but the quantity traded is uncertain.