Consolidated results
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| Compare your answers to the 3 questions asked on your original handouts in order to answer each of the following questions: | |
| 1. | Question (1): Does the equilibrium quantity of
cigars (1) rise, (2) fall, or (3) remain the same? Do you all have the same answer to this question? If so, what is it? If not, what are the various answers and what seems to account for the differences?
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| 2. | Question (2): Does the equilibrium price of
cigars (1) rise by more than $4, (2) rise by exactly $4, (3) rise by less than $4, (4)
remain the same as before, or (5) fall? Do you all have the same answer to this question? If so, what is it? If not, what are the various answers and what seems to account for the differences?
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| 3. | Question (3): Does the total expenditure on
cigars (PxQ) by consumers (1) rise, (2) fall, or (3) remain the same? Do you all have the same answer to this question? If so, what is it? If not, what are the various answers and what seems to account for the differences?
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