Question

QUESTION 62 In February (two months ago), the price of a package of eight rolls of toilet paper was approximately $8 at the Publix grocery store in Vero Beach, Last week, it was a little under $19. This was due to a shift of which curve and due to which shift factor? The supply curve shifted due to a change in the number of sellers The demand curve shifted due to a change in the number of buyers The demand curve shifted due to a change in the prices of other and related goods. The demand curve shifted due to a change in expectations The supply curve shifted due to a change in society's income The supply curve shifted due to a change in consumer tastes. QUESTION 63 Consider the following two sentences, Production exhibits economies of scale when long-run average total costs decrease as output increases. Production exhibits diseconomies of scale when long-run average total costs increase as output increases. The first sentence is true but the second sentence is false. The first sentence is false but the second sentence is true. Both sentences are true Both sentences are false

Answer 1

62. (D) the demand curve shifted due to change in expectations.

As consumers feared constraints on supply side and a shortage of things as a consequence, their demand at present increased. Consumers are risk averse and want to stock up goods for future. The demand curve shifts rightward and at the new intersection, the equilibrium prices are higher.

63. (C) Both sentences are true.

Economies of scale are the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale. Diseconomies of scale are the cost disadvantages that economic actors accrue due to an increase in organizational size or on output, resulting in production of goods and services at increased per-unit costs.