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There are many buyers and sellers in the market for trumpets.

1. If trumpets are normal goods, explain what will happen to price and quantity of trumpets when income in the economy increases.

2. Now assume that there are many new trumpet producers in the market. Explain what will happen to the price and quantity of trumpets in the market.

3. If there are few substitutes for trumpets, would the elasticity of demand for trumpets be relatively elastic or relatively inelastic?

Respuesta :

jaquelinefvr

If the economy's income rises, the price of a normal good like a trumpet will rise and the quantity will increases.

If the number of trumpet producers on the market increases, this means that there will be an increase in supply, which can mean greater availability of these goods and, consequently, a reduction in price.

In a situation where there are few substitutes for trumpets, demand will be relatively inelastic, as consumers are not as sensitive to price changes due to low availability.

What is the law of supply and demand?

They are economic concepts related to the quantity of a good available in the market and its price, which are determined by the law of supply and demand, impacted by economic forces, such as income, producers, and policies for example.

Therefore, the greater the supply than the demand, the lower the prices, and the lower the supply, the higher the prices.

Find out more about supply and demand here:

https://brainly.com/question/1222851

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