Question

How will shift right in supply affect equilibrium price, assuming demand remains constant?

a. increase b. decrease c.will not affect it d. cannot be determined

According to the law of demand, if the price of a good decreases, its Qd?

a. decreases b. increases c. goes to zero d. stays constant

According to the income effect, price changes equal changes in?

a. money income b.real income c.demand d. utility

on the demand curve a chance in price leads

a. no changes b. the entire curve to the shift right c. a movement along the curve d. the entire curve to the shift left

if money income increases, which of the following is likely to happen (paribus)?

a. Qd increase. b. demand for normal goods increases c. demand for substitute goods increases d. demand for inferior goods increase

Which of the following ls true regarding inferior goods?

a. their demand shirts left as money income decreases b, their demand shifts right as money income increase

c. their demand shifts right as money income decrease d. their demand doesn't change as money income increases

which of the following statements would be true?

a. if the price of a good increases, the demand curve for its complement would shift right

b. if the price of a good increases, the demand curve for its substitute would shift right

c. if the number if consumers of a good increase, its demand curve would shift left

d. if the consumers expected a good to be discontinued and thus unavailable inn the future, its demand curve would shift left (in the short run)

If the new technology replaces an existing product, which of the following would happen in the short run?

a. Qd for that existing product would decrease

b. Qd for that existing product would increase

c. the supply curve for that existing product would shit left

d. the supply curve for that existing product would shift right

if the price of labor decreases for the production of a good, which of the following would happen in the short run?

A. the supply curve for that good would shift right

b.the supply curve for that good would shift left

c. Qd for that good would increase

d. Qd for that good would decrease

Which if the following statements describes equilibrium price?

A, it doesn't change when supply shifts. b, it exists when there is a shortage

c. it is the price where Qd= Qs

d. it doesnt change even when demand shifts

Which of the following describes a market where Qd doesn't equal Qs?

A. equibruim pricing model b. equilibrium c. consumer surplus c. disequilibrium

Answer 1

How will shift right in supply affect equilibrium price, assuming demand remains constant?

The equilibrium price will decrease when supply shift right and demand remains constant

b. Decreases

According to the law of demand, if the price of a good decreases, its Qd?

b. Increases

According to the income effect, price changes equal changes in?

a. Money income

on the demand curve a chance in price leads:

c. a movement along the curve

if money income increases, which of the following is likely to happen (paribus)?

b. demand for normal goods increases

Which of the following ls true regarding inferior goods?

c,  their demand shifts right as money income decrease

which of the following statements would be true?

b. if the price of a good increases, the demand curve for its substitute would shift right

Since the increase in the price of the good will make the substitute good relatively cheaper the demand for the substitute would increase and the demand curve for the substitute would shift right.

If the new technology replaces an existing product, which of the following would happen in the short run?

c. the supply curve for that existing product would shift left

if the price of labor decreases for the production of a good, which of the following would happen in the short run?

A. the supply curve for that good would shift right

Which of the following statements describes equilibrium price?

c. it is the price where Qd= Qs

Which of the following describes a market where Qd doesn't equal Qs?

d. disequilibrium