If A and B are complementary goods, a decrease in the price of good A would:
Multiple Choice Quizzes with Answer in English (Page: 394)
If A and B are substitute goods, a decrease in the price of good A would:
If A and B are substitute goods, an increase in the price of good A would:
Other things held constant, the lower the price of a good
Other things held constant, the higher the price of a good
Other things held constant, the lower the price of a good
In a competitive market, the market demand is Qd = 60 – 6P and the market supply is Qs = 4P. A price floor of $9 will result in a
Suppose supply decreases and demand increases. What effect will this have on the quantity?
Suppose supply decreases and demand increases. What effect will this have on the price?
Suppose both supply and demand increase. What effect will this have on the equilibrium quantity?
Suppose both supply and demand increase. What effect will this have on the equilibrium price?
The seller side of the market is known as the:
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the loss in social welfare when an $8 per unit price floor is imposed on the market.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the surplus producers receive when an $8 per unit price floor is imposed on the market.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the surplus consumers receive when an $8 per unit price floor is imposed on the market.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. An $8 per unit price floor will result in a
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the number of units and the price at which those units will be exchanged when there is an $8 per unit price floor.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the equilibrium price and quantity in this market.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 – 2QX and PX = 2 + 2QX. Compute the surplus received by consumers and producers.
Suppose the market supply for good X is given by QX S = -100 + 5PX. If the equilibrium price of X is $100 per unit then producers’ revenue from X is