Question

In one year, 15 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

Ans

The expectation to happen to the price and quantity of a game of bowling in California during that year is:

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

Step-by-step explanation:

Question mentions that their are 15 bowling alleys which have been opened in California. In the same year the channel ESPN has started its broadcasting of bowling on TV.

Due to this broadcasting the audience are involving more and getting interest in the sport.

So, the expectation to happen to the price and quantity of a game of bowling in California during that year is:

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

When the supply of the items remains same and the demand of the item increases in that case the equilibrium price goes down and equilibrium quantity goes up. Conversely follows when supply increases and demand decreases.