Question

In one year, 50 bowling alleys opened in California. During that same year, ESPN started broadcasting professional bowling on TV, which sparked more interest in the sport. What would we expect to happen to the price and quantity of a game of bowling in California during that year? A. Equilibrium price will be indeterminate and equilibrium quantity will go down. B. Equilibrium price will go up and equilibrium quantity will go up. C. Equilibrium price will go down and equilibrium quantity will be indeterminate. D. Equilibrium price will be indeterminate and equilibrium quantity will go up. E. Equilibrium price will go up and equilibrium quantity will be indeterminate.

Answer 1

d.Equilibrium price will be indeterminate and equilibrium quantity will go up.

Step-by-step explanation:

An increase in demand and a decrease in supply will cause an increase in equilibrium price, but the effect on equilibrium quantity cannot be detennined. ... If demand and supply change in the same direction, the change in the equilibrium output can be determined, but the change in the equilibrium price cannot.