Hi, I need some help
3-When the magnitude of a decrease in supply is greater than the magnitude of a decrease in
a-Both
b-Equilibrium quantity will increase, and
c-Equilibrium quantity will decrease, and equilibrium price will increase.
d-Both equilibrium quantity and price will decrease.
4-Assume the market equilibrium price of rice is $5.00 per pound. If the government does not allow rice farmers to charge more than $1.00 per pound of rice, (5 points)
- there will be a rice surplus.
- there will be a rice shortage.
- quantity demanded will equal quantity supplied.
- the market equilibrium price will move from $5.00 to $1.00
5-Which of the following situations certainly leads to a lower equilibrium price? (5 points)
- An increase in demand accompanied by an increase in supply.
- A decrease in demand accompanied by an increase in supply.
- A decrease in supply accompanied by an increase in demand.
- An increase in demand, without a change in supply.
6-Which of the following could lead to a rightward shift of the demand curve for a good? (5 points)
- a decrease in the price of a substitute good
- an increase in the price of a complementary good
- an increase in income assuming that the good is an inferior good
- expectations that the price of the good will rise in the future.
7- A surplus will occur if a ________ is set ________ the equilibrium price. (5 points)
a-
b-price floor; above
c-
d-price ceiling; below
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