Question

please answer all

17. In which of the following statements are the terms demand, supply, quantity demanded, and/or quantity supplied used correctly? a Changes in demand and supply cause changes in the equilibrium price. b. If the demand rises, supply rises. C. Oranges are cheaper in Florida and therefore the demand is greater in Florida. d. When the quantity demanded exceeds supply, the equilibrium price will rise. e. All of these 18. If a smaller quantity is supplied at each price, then a supply has decreased. b. supply has increased. C. demand has decreased. d demand has increased e. none of these is true. 19. Ifa U.S. firm is purchasing supplies from another country and that country's currency rose relative to the dollar, the a. cost to the U.S. firm for the same quantity of the supplies has fallen. b. cost to the U.S. firm for the same quantity of the supplies has risen. C. firm will produce more at every output price. d. firm will produce the same at every output price. e. firm will not produce. 20. A market is in equilibrium when a. equilibrium price equals equilibrium quantity. b. the price is high. c. the price is low. d. the government imposes price controls e. the demand and supply curves intersect. 21. At the equilibrium price, a. there is a tendency for the price to rise. b. there is no pressure on price to rise or fall. c. quantity demanded exceeds quantity supplied. d. quantity supplied exceeds quantity demanded. e, there is a tendency for the price to fall. Focus

Answer 1

17. a. Changes in demand fmand supply cause changes in equilibrium price.

Only in this statement are the given terms used correctly. Demand or supply change results in changes in the equilibrium price.

18. a. Supply has decreased

At each price, producers are willing to supply a lesser quantity. So it means supply has decreased.

19. b. Cost to the U.S firm for the same quantity of supplies has risen.

The currency of other country has rose relative to the U.S means that the U.S dollar has its value fallen in terms of other country's currency. So, each US dollar can buy less quantity. So, for same quantity of supplies the cost of US firm has risen.

20. e. The demand and supply curves intersect.

Equilibrium is when quantity demanded and quantity supplied are equal at a price. This happens when demand and supply curves intersect.

21. b. There is no pressure on price to rise or fall.

At equilibrium, teh quantity demanded and quantity supplied are equal. So, there is no tendency for price to rise or fall.