Answer : Option B is correct. If supplier expect that in near future the price of the product has been increased than they can increase Supply now in order to overcome the loss of revenue of future they increases Supply now as to earn maximum revenue.
Assign. #20, 18 If suppliers expect the price of their product to fall in the future,...
QUESTION 16 Event: Firms expect the price of oil will rise in the future due to unrest in the Middle East. (Long Run) Question: What is the change in aggregate demand (AD)? a. Increase b. Decrease c. No change d. Indeterminate QUESTION 17 Event: Firms expect the price of oil will rise in the future due to unrest in the Middle East. (Long Run) Question: What is the change in short run aggregate supply (SRAS)? a. Increase b. Decrease c....
When people expect interest rates to fall in the future, the _____ curve for bonds shifts to the _____. A. supply; right. B. demand; left. C. supply; left. D. demand; right.
questions 20 18. A movement downward and to the right along a demand curv a. increase in demand. b. decrease in demand. c. decrease in quantity demand d increase in quantity demand. 19. The law of supply says that an increase in a price causes quantity supplied to increase. b. price causes quantity supplied to decrease. c. quantity supplied causes price to increase d. quantity supplied causes price to decrease 20. A downward-sloping demand curve shows a that demand decreases...
1. What will happen to the equilibrium quantity and price of a product in a competitive market when the increase in demand exactly offsets the decrease in supply? A)Equilibrium quantity will increase and equilibrium price will decrease B)Equilibrium quantity will decrease and equilibrium price will increase C)Equilibrium quantity will increase and equilibrium price will stay the same D)Equilibrium quantity will stay the same and equilibrium price will increase 2. Which statement is not correct? A)If demand increases and supply decreases,...
Due to expectations of lower inflation in the future, we would typically expect the supply of loanable funds to ____ and the demand for loanable funds to ____. a. increase; increase b. increase; decrease c. decrease; decrease d. decrease; increase
At the current price, there is a shortage of a product. We would expect price to O increase, quantity demanded to increase, and quantity supplied to decrease. O decrease, quantity demanded to increase, and quantity supplied to decrease. O increase, quantity demanded to decrease, and quantity supplied to increase. O increase, quantity demanded to increase and quantity supplied to increase. 4 pts
At the current price, there is a shortage of a product. We would expect price to O increase, quantity demanded to increase, and quantity supplied to decrease. O decrease, quantity demanded to increase, and quantity supplied to decrease. O increase, quantity demanded to decrease, and quantity supplied to increase. O increase, quantity demanded to increase and quantity supplied to increase. 4 pts
Assume there are 100 suppliers of widgets in the widget market. Half of these suppliers supply 35 widgets to the market, a quarter of these suppliers supply 40 widgets to the market, and a quarter of these suppliers supply 50 widgets to the market. What is the market supply for widgets? a. 100 d. 4,000 b. 125 e. 1.750 c. 400 8. When the price falls, what happens? a. There is no change in the quantity supplied or supply. b....
would the answer be c? If the demand for a product decreases, then we would expect equilibrium price O a. to increase and equilibrium quantity to decrease. O b. and equilibrium quantity to both increase. C. and equilibrium quantity to both decrease. O d. to decrease and equilibrium quantity to increase.
18) If the demand for a product is perfectly inelastic, a decrease in the price of the product A) will decrease total revenue C) will increase total revenue 18) B) will not change total revenue. D) any of the above are possible.