Suppose there are a negative demand shock and a positive supply shock in a perfectly competitive market. Which of the following cannot happen? a.The equilibrium price increases. b.The equilibrium price decreases. c.The equilibrium quantity increases. d.The equilibrium quantity decreases. e.None of the above
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Suppose there are a negative demand shock and a positive supply shock in a
a.The
b.The equilibrium price decreases.
c.The
d.The equilibrium quantity decreases.
e.None of the above
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- Which of the following statements is correct? A. Supply will usually increase in response to an increase in demand. B. A change in supply is a change in quantity offered in response to a change in price. C. A change in supply is due to a change in those things held constant in constructing a specific supply curve. D. A movement from one point to on a supply curve to another on the same curve can occur in response to a change in the technology of productionSuppose the demand of a product decreases. What will be the effect on the market equilibrium price and quantity if supply is perfectly inelastic? If supply is perfectly inelastic, then A. the equilibrium price will decrease and the equilibrium quantity will decrease. B. the equilibrium price will decrease and the equilibrium quantity will not change. C. the equilibrium price will not change and the equilibrium quantity will not change. D. the equilibrium price will increase and the equilibrium quantity will increase.Which of the following will definitely occur when there is an increase in demand and decrease in supply of a product? a. An increase in equilibrium price b. A decrease in equilibrium price c. An increase in equilibrium quantity d. S decrease in equilibrium quantity
- If E were the old equilibrium in the market for wheat in the figure below, and E' the new one, which of the following could have caused the change? E' (E D' D2 Consumer income rose, causing a supply shift. Bad weather caused a supply shift. Supply and demand both shifted. Consumer income rose, causing a demand shift. All of the above are plausible descriptions. а. b. c. d. e.The following is occurring in the market for bicycles: There is an increase in the number of firms. There is a positive change in consumer tastes. Consumers expect prices to increase. Costs of inputs have decreased. There has been an increase in the number of consumers. Based on this information, what can be predicted with certainty? a. The equilibrium price will decrease.b. The equilibrium quantity will increase.c. The equilibrium price will increase.d. The equilibrium quantity will decrease. Assume there is a simultaneous decrease in supply and decrease in demand. Which of the following statements is correct?a. The equilibrium quantity will definitely decrease.b. The equilibrium quantity will definitely increase.c. The equilibrium price will definitely increase.d. The equilibrium price will definitely decrease.e. The equilibrium quantity will definitely stay the same. In which of the following cases will a firm’s total revenue increase? There is more than one correct answer to…Carefully examine the picture attached and state what is happening in the following markets and indicate if: Impact on demand? a. Excess supply b. increase towards equilibrium c. decrease equilibrium quantity d. Shift outwards/ to right e. decrease equilibrium price f. Increase equilibrium quantity g. Excess demand h. Change in quantity uncertain I. decrease towards equilibrium j. Change in price uncertain k. No impact l. Shift inwards/ to left Impact on supply? a. Excess supply b. increase towards equilibrium c. decrease equilibrium quantity d. Shift outwards/ to right e. decrease equilibrium price f. Increase equilibrium quantity g. Excess demand h. Change in quantity uncertain I. decrease towards equilibrium j. Change in price uncertain k. No impact l. Shift inwards/ to left Impact on price? a. Excess supply b. increase towards equilibrium c. decrease equilibrium quantity d. Shift outwards/ to right e. decrease equilibrium price f. Increase equilibrium quantity g. Excess…
- How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitive market; that is, do price and quantity rise, fall, or remain unchanged, or are the answers indeterminate because they depend on the magnitudes of the shifts? Use supply and demand to verify your answers. a. Supply decreases and demand is constant. b. Demand decreases and supply is constant. c. Supply increases and demand is constant. d. Demand increases and supply increases. e. Demand increases and supply is constant. f. Supply increases and demand decreases. g. Demand increases and supply decreases. h. Demand decreases and supply decreases.The natural tendency to equilibrium in a given market happens when * A. the price is lower or higher than the equilibrium there will come a time that price would settle down or redound to the equilibrium price. B. when the equilibrium price increases due to the satisfaction of the consumer. C. when the equilibrium quantity decreases due to the shortage of supply. D. all of the aboveMovement along the demand and supply curves is referred to as "a change in demand and supply," while a shift in the demand and supply curves is referred to as "a change in quantity demanded and supplied." True False
- If we observe a rise in the equilibrium price and a decline in the equilibrium quantity, then which of the following must have happened? A. Both demand and the supply must have increased. B. Both demand and the supply must have decreased. C. The demand increased while the supply remained unchanged. D. The supply increased while the demand remained the same. E. None of the above is correct.In a competitive market, what happens to equilibrium price and quantity when demand increases and supply remains constant?A. Price increases, quantity decreasesB. Price decreases, quantity increasesC. Price and quantity both increaseD. Price and quantity both decreaseIn a market, demand increases and supply decreases. What happens to equilibrium quantity? a.It remains the same b. It rises c.It falls d.Unknown without further information