A decrease in demand for a products should ? A. increase equilibrium price and quantityB. Decrease equilibrium price and quantity C. Increase equilibrium price and decrease quantity D. Decrease equilibrium price and increase quantity
A shift in demand will have more effect on price than quantity if ? A. The price elasticity of supply is + 3 B. The price elasticity of supply is + 0.2C. The price elasticity of supply is + 2…
The price mechanism does not act as a ? A. Signal B. Incentive C. Rationing deviceD. Indicator of income
The price mechanism cannot ? A. Act as a signal B. Act as a incentive C. Act as a rationing deviceD. shift the demand curve
A subsidy paid to producers ? A. Shifts the supply curve B. shifts the demand curve C. Leads to a contractions in supply D. Leads to an extension of supply
If the price was fixed below the equilibrium price there would be ? A. Excess supplyB. Excess demand C. Equilibrium D. Downward pressure on prices
A shift in supply will have a bigger effect on price than output if demand is ? A. income elastic B. income inelastic C. Price elasticD. Price inelastic
An increase in income will ? A. Lead to a movement along the demand curve B. Shift the supply curveC. Shift the demand curve D. Lead to an extension of demand
An inferior good is one for which an increase in income causes a(n) ? A. decrease in supply B. increase in demand C. increase in supplyD. decrease in demand
Suppose consumer tastes shift toward the consumption of apples Which of the following statements is an accurate description of the impact of this event on the market for apples ? A. There is an increase in the quantity demanded of…