Which of the following is a correct statement?
A. Price ceilings increase demand
B. Price ceilings create surpluses
C. Price floors create surpluses
D. Price floors increase supply
Economists assume that other things are equal when representing the law of supply and demand, meaning that marginal cost equals marginal benefit.
An increase in the price of product G will result in a(n):
A. Increase in the demand for G
B. Decrease in the demand for G
C. Larger quantity of G demanded
D. Smaller quantity of G demanded
A decrease in the prices of resources for producing a product will increase the supply of the product.
Which would cause an increase in the supply of a product at a given price?
A. An increase in the price of the product
B. An increase in the costs of producing a substitute product
C. An increase in the costs of producing a complementary product
D. A reduction in the cost of resources to produce the product
f an increase in consumer incomes causes the demand curve for product Z to shift to the left, then it can be said that product Z is a(n):
A. Normal good
B. Luxury good
C. Inferior good
D. Inexpensive good3 AnswersEconomics5 months ago
An increase in demand for a good may be caused by a(n):
A. Shift in supply of the good
B. Increase in the price of the good
C. Decrease in the price of the good
D. Increase in the price of a substitute good
When demand for personal computers increases, there is an increase in supply but no increase in the quantity supplied as the equilibrium price rises.
A decrease in the demand for a good is expected to cause:
A. Higher prices and decreased quantity sold
B. Higher prices and increased quantity sold
C. Lower prices and increased quantity sold
D. Lower prices and decreased quantity sold
An increase in the supply of wheat in the United States is most likely to result from:
A. A decrease in the amount of subsidies that wheat farmers receive from the government
B. A change in farming technology that improves the soil for wheat
C. An increase in the cost of machinery for harvesting wheat
D. An increase in the price of wheat
There is a surplus in a market for a product when:
A. The decrease in supply is greater than the increase in demand
B. The increase in demand is greater than the decrease in supply
C. Quantity supplied is less than quantity demanded
D. Quantity demanded is less than quantity supplied
A government-set price ceiling will lower equilibrium price and quantity in a market.
B. false3 AnswersEconomics5 months ago