Final answer:
A higher price for ski lift tickets is expected to decrease the number of skiers according to the law of demand. In the financial market, a rise in supply leads to lower interest rates, while an increase in loan quantity can result from either a rise in demand or supply. A price ceiling does not shift demand or supply but creates excess demand.
Step-by-step explanation:
Holding all else constant, a higher price for ski lift tickets would be expected to decrease the number of skiers as it makes skiing less affordable for consumers. This scenario is explained by the law of demand, which states that, ceteris paribus, when the price of a good or service increases, the quantity demanded decreases, and vice versa.
For the questions from the financial market perspective:
- A decline in interest rates would be expected with a rise in the supply of loanable funds, as this increases the availability of money to lend and typically leads to lenders reducing interest rates to attract borrowers.
- An increase in the quantity of loans made and received would occur with either a rise in demand for loans or a rise in supply. Both scenarios lead to more transactions in the loan market.
- A price ceiling typically does not shift the demand or supply curve itself, but it can create excess demand by setting a price below the equilibrium, leading to shortages.