1. If the price of a product decreases, we would expect:
a. Demand to increase
b. Quantity supplied to decrease
c. Supply to decrease
d. Quantity supplied to increase
2. "Price" in the statement of the Law of Supply refers to:
a. The amount that buyers are willing and able to pay for each unit of the product.
b. Marginal cost of producing the last unit of the product.
c. The total revenues that sellers receive for selling a given quantity of the product.
d. The total amount that buyers pay to acquire a given quantity of the product.
3. A decrease in demand and an increase in supply will:
a. Affect price in an indeterminate way and decrease the equilibrium quantity
b. Increase the price and affect the equilibrium quantity in an indeterminate way
c. Decrease price and affect the equilibrium quantity in an indeterminate way
d. Increase the price and increase the equilibrium quantity
4. When producers (say, of roads) are not able to make all consumers pay for enjoying their product (i.e., the roads), they tend to see:
a. The marginal cost of production is too low, and there is a supply-side market failure
b. The marginal benefit of production is too high, and there is a demand-side market failure
c. The marginal cost of production is too high, and there is a supply-side market failure
d. The marginal benefit of production that is too low, and there is a demand-side market failure
1. If the price of a product decreases, we would expect:
a. Demand to increase
b. Quantity supplied to decrease
c. Supply to decrease
d. Quantity supplied to increase
2. "Price" in the statement of the Law of Supply refers to:
a. The amount that buyers are willing and able to pay for each unit of the product.
b. Marginal cost of producing the last unit of the product.
c. The total revenues that sellers receive for selling a given quantity of the product.
d. The total amount that buyers pay to acquire a given quantity of the product.
3. A decrease in demand and an increase in supply will:
a. Affect price in an indeterminate way and decrease the equilibrium quantity
b. Increase the price and affect the equilibrium quantity in an indeterminate way
c. Decrease price and affect the equilibrium quantity in an indeterminate way
d. Increase the price and increase the equilibrium quantity
4. When producers (say, of roads) are not able to make all consumers pay for enjoying their product (i.e., the roads), they tend to see:
a. The marginal cost of production is too low, and there is a supply-side market failure
b. The marginal benefit of production is too high, and there is a demand-side market failure
c. The marginal cost of production is too high, and there is a supply-side market failure
d. The marginal benefit of production that is too low, and there is a demand-side market failure
Related textbook solutions
Related questions
1. A change in quantity supplied:
A. refers to a shift in the supply curve.
B. results from a change in a determinant of supply.
C. refers to a movement along a given supply curve.
D. is caused by a change in the number of sellers in the industry.
2. Which one of the following would most likely cause the supply curve for microwaves to shift to the right:
A. a decrease in the price of microwaves.
B. an increase in the wage rate earned by workers who produce microwaves.
C. a decrease in consumer preferences for microwaves.
D. an increase in the number of firms that produce microwaves
3. If the actual price sellers are pricing their goods at is currently above the equilibrium price. There is a ____________. Therefore, we would expect sellers to ____________ the price until the market reaches equilibrium.
| A. |
surplus; raise |
||||||||
| B. |
surplus; lower |
||||||||
| C. |
shortage; raise |
||||||||
|
D. shortage; lower 4. Suppose the demand and the supply of wine both increase. The net effect of these changes in demand and supply will be
|
