Question

m to have more and 13. University tuition rises almost eve y fulton rises almost every year. vet universities seem to have more more students every year. What would explain this situation Both the supply of and demand for university education are falling. b. The demand for university edu ne demand for university education and more quickly than supply. c. The doma e demand for university education is rising more slowly than supply. e supply of the university education has decreased and the demand for university education remains unchanged. All of the following events would lead to lower prices Ex uslasts want to buy more electric cars, but only at a lower price. a. an increase in the number of manufacturers of electric cars. lead to lower prices EXCEPT b. a decrease in the case in the price of lithium which is used in the electric car batteries. ological advancement in the production of electric car batteries. 14. Electric car enthusiasts want to b ne time, an increasing number of sume that you have no further dan increase in the price of gasoline. 15. In recent years the cost of producing wines in Can ost of producing wines in Canada has increased, largely due to the rising rent for vineyards. At the same time, an increasing Canadians say they prefer wine to beer. Assume that you have information on this matter. Which of the following mater. Which of the following best explains the oneGo these events on the wine market? a. The supply curve has shifted to the left and the demand curve night. As a result, there has been an increase in the equilibrium price a uncertain effect on the equilibrium quantity. b. The supply curve has shifted to the left and the demand curve has she right. As a result, there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price. . Both the supply and demand curves have shifted to the right. As a result, there na been an increase in both the equilibrium price and the equilibrium quantity. d. Supply and demand curves have both shifted to the right. Thus, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity nomists use the concept of _ to measure how as quantity, responds to a changa ficiency ase in the equilibrium price and an mand curve has shifted to the

Answer 1

13). It is clear that demand is increasing greater than supply because only in that case both the price of education and number of students both would increase. Select B

14) A, B, and C will increase the supply of electric cars and so the price would fall. However expensive gasoline will decrease demand for gasoline driven cars and increase demand for electric cars, raising its price. Select D

15) Supply will decrease due to higher cost, demand will increase as consumers prefer wine over beer. This raises the price from both ends but effect on quantity is uncertain. Select A