Indicate whether price (P) and quantity (Q) increase (↑) or decrease (↓) in each of the following situations: The birthrate in Canada increases dramatically (lots of babies are born). What will happen in the baby food market? Answer 1 Choose… Global warming increases the temperatures in Canada in the winter months. What will happen in the natural gas market? (natural gas is a main source to heat buildings) Answer 2 Choose… The number of bicycle manufacturers increases. What will happen in the market for bicycles? Answer 3 Choose… A fungus begins to kill coffee plants. What will happen in the coffee bean market?
Answer 1: Birthrate in Canada Increases Dramatically When the birthrate in Canada increases, the quantity of baby food (Q) in the market will increase while the price (P) of baby food will decrease. This is because the increased demand for