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Suppose that supply increases and demand decreases. What effect will this have on price and quantity?
Correct answer(s):
- None of the statements associated with this question are correct.
Suppose you produce wooden desks, and government….
Correct answer(s):
- Price will increase but quantity will decrease.
If steak is a normal good, what do you suppose would happen to price and quantity during an economic recession?
Correct answer(s):
- Price and quantity would both decrease.
Suppose market demand and supply are…..
Correct answer(s):
- $1,650.
Suppose market demand and supply are given by Qd = 100 – 2P and QS = 5 + 3P. If a price floor of $30 is set, what will be size of the resulting surplus?
Correct answer(s):
- 55
The minimum legal price that can be charged in a market is:
Correct answer(s):
- a price floor.
Suppose market demand and supply are given by Qd = 100 – 2P and QS = 5 + 3P. If a price ceiling of $15 is imposed, what will be the resulting full economic price?
Correct answer(s):
- $25
Suppose market demand and supply are given by Qd = 100 – 2P and QS = 5 + 3P. If a price ceiling of $15 is imposed,
Correct answer(s):
- there will be a shortage of 20 units.
The maximum legal price that can be charged in a market is:
Correct answer(s):
- a price ceiling.
Suppose market demand and supply are given by Qd = 100 – 2P and QS = 5 + 3P. The equilibrium quantity is:
Correct answer(s):
- 62
Suppose market demand and supply are given by Qd = 100 – 2P and QS = 5 + 3P. The equilibrium price is:
Correct answer(s):
- $19
If a shortage exists in a market, the natural tendency is for:
Correct answer(s):
- price to increase.
Suppose the supply of good X is given by QS x = 10 + 2Px. How many units of good X are produced if the price of good X is 20?
An ad valorem tax causes supply curve to:
Correct answer(s):
- become steeper.
Technological advances will cause the supply curve to:
Correct answer(s):
- shift to the right.
Changes in the price of a good lead to:
Correct answer(s):
- changes in the quantity supplied of the good.
For a steel factory, a decrease in the cost of electricity to the plant will cause the supply curve to:
Correct answer(s):
- shift to the right.
The economic principle that producers are willing to produce more output when price is high is depicted by the:
Correct answer(s):
- upward slope of the supply curve.
The law of supply states that, holding all else constant, as the price of a good falls:
Correct answer(s):
- quantity supplied falls.
The curve which summarizes the total quantity producers are willing and able to produce at differing prices is the:
Correct answer(s):
- market supply curve.