The market for a hardcover book in which the publisher overestimated demand, charging more than the equilibrium price. a) The market for automobile tires after the price of rubber increases.
b) The market for a hardcover book in which the publisher overestimated demand, charging more than the equilibrium price.
c) The market for a normal consumer good after a significant rise in average income.
d) The market for infant cribs after a significant decline in the birth rate. For the following three parts, answer each question completely directly, and succinctly.
e) the demand for a good decreases, ceteris paribus, what will happen to the equilibrium price?
f) What would happen to the equilibrium price and equilibrium quantity of a good after the government subsidized its production at the same time that demand increased? Explain.
g) Imagine the supplier of a small handcrafted good does not know that a major social media influencer has praised its product's high quality. What would be the first disequilibrium state of this supplier's good? Explain.