Asked by Kayla Harrington on May 11, 2024
Verified
Suppose that more police and security workers become aware that wearing bulletproof vests can protect them from injury and decide to start wearing bulletproof vests.At the same time,the price of ceramics used to produce the vests falls.The equilibrium price of bulletproof vests _____ and the equilibrium quantity produced _____.
A) increases;increases
B) decreases;decreases
C) probably changes,but in an ambiguous direction;probably changes,but in an ambiguous direction
D) probably changes,but in an ambiguous direction;increases
Bulletproof Vests
Protective clothing designed to absorb or deflect bullet impacts, providing safety to the wearer from firearm projectiles.
Ceramics
Non-metallic, inorganic materials that are hardened by high-temperature firing, used for creating objects such as tiles, pottery, and sculptures.
- Understand the implications of input cost changes on supply.
- Study the repercussions of technological progress and alterations in choice on equilibrium in the marketplace.
Verified Answer
SD
Stephany DeleonMay 18, 2024
Final Answer :
D
Explanation :
With more police and security workers wearing bulletproof vests, the demand for vests will increase. At the same time, the fall in price of ceramics used to produce vests will lower the cost of production, which will increase the supply of vests. Hence, both the demand and supply will increase, resulting in an increase in equilibrium quantity produced. However, the effect on equilibrium price is ambiguous because the increase in demand and supply may offset each other or not depending on the magnitude of change in each.
Learning Objectives
- Understand the implications of input cost changes on supply.
- Study the repercussions of technological progress and alterations in choice on equilibrium in the marketplace.