Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter P2, Problem 5KC
To determine
The impact of the decrease in the consumer income on the supply curve.
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A change in demand is said to take place when there is aA Shift of the demand curve.B Shift of the supply curve.C Movement along the demand curve.D Quantity change.E Price change.
Refer to the figure above. Assume the market is originally at point W. Movement to point Y is a combination of:
A. an increase in quantity supplied and an increase in demand.
B. an increase in supply and an increase in demand.
C. an increase in supply and an increase in quantity demanded.
D. a decrease in supply and an increase in quantity demanded.
An increase in supply:A. indicates that more is supplied at higher prices.B. indicates that more is supplied at lower prices.C. indicates that more is supplied at all prices.D. is illustrated by an upward shift of the supply curve.E. is illustrated by a leftward shift of the supply curve.
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- Which one of the following statements is incorrect?A. An increase in supply is illustrated by a rightward shift of the supply curve.B. An increase in the quantity supplied is illustrated by an upward movement along the supply curve.C. There is a positive relationship between the price of a product and the quantity supplied.D. A decrease in supply is illustrated by a downward movement along the supply curve.E. A supply curve illustrates the quantities supplied at different prices, ceteris paribusarrow_forwardIf we observe an increase in the price of a good and an increase in the amount of the good bought and sold, this could be explained by an increase in the supply of the good. an increase in the demand for the good. a decrease in the demand for the good. a decrease in the supply of the good.arrow_forwardRefer to figure 3.3. A change from point A to point E representsarrow_forward
- Movement along the demand and supply curves is referred to as "a change in demand and supply," while a shift in the demand and supply curves is referred to as "a change in quantity demanded and supplied." True Falsearrow_forwardDiagram of increase in demand and a diagram of increase in supply both do separately and do well labelledarrow_forwardcarefully explain what is happening in the market for tea. indicate the impact if any on demand, supply,price and quantity .coffee and tea are demand substitutes. coffee plantations increase the supply of coffee. choose the suitable answer for QUESTION 2, 3 and 4. Questions 2) impact on supply 3)impact on price 4)impact on quantity Answers. a. decrease equilibrium quantity b.excess supply c. increase equilibrium quantity d. decrease towards equilibrium e.increase towards equilibrium f. change in price in uncertain g.decrease equilibrium price h.excess demand i. change in quantity uncertain j.increase equilibrium price k. no impact l.shift outwards/ to right m.shift inwards/to leftarrow_forward
- If both a supply curve and a demand curve shift left, the only definite conclusion is a. Price increases. b. Price decreases. c. Quantity sold at equilibrium decreases. d. Quantity sold at equilibrium increases.arrow_forwardWhich one of the following will not lead to an increase in the supply of precast concrete walls, illustrated by a rightward shift of the supply curve?A. A decrease in wage rates in the industry.B. A decrease in the price of concrete.C. A decrease in the price of cement.D. An increase in the price of precast concrete walls.E. An improvement in technology pertaining to the manufacture of precast concrete wallsarrow_forwardWhich one of the following statements is incorrect?A. A movement along a demand curve relates to the slope of the curve.B. A movement along a demand curve is called a change in the quantity demanded.C. A shift of a demand curve relates to the position of the curve.D. A shift of a demand curve relates to the intercept of the curve.E. There is no real difference between a shift of a demand curve and a change in the quantity demanded.arrow_forward
- This means that when the price of a certain commodity increases, automatically demand will fall and vice versa, all other things held constant. Select one: a. Law of demand b. demand c. quantity demanded d. elasticity of demandarrow_forwardExplain why a demand curve will shift. Explain why a supply curve will shift. What are the differences between quantity demanded and demand? Provide examples from your personal or professional life where you believe a demand curve shifted and when you believed a supply curve shifted.arrow_forwardFigure: Supply and Demand 3 Price S X D Quantity Which of the following statements applies to the diagram? An increase in supply causes an increase in quantity demanded. A decrease in supply causes a decrease in demand. An increase in supply causes an increase in demand. A decrease in supply causes an increase in quantity demanded.arrow_forward
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