### Question 7If, for a product, the quantity supplied exceeds the quantity demanded, the market price will fall until:- ( ) the quantity demanded exceeds the quantity supplied. The market will then be in equilibrium.- (●) quantity demanded equals quantity supplied. The equilibrium price will then be lower than the market price.- ( ) all consumers will be able to afford the product.- ( ) quantity demanded equals quantity supplied. The market price will then equal the equilibrium price.Explanation:This question addresses the concept of market equilibrium. When the quantity supplied exceeds the quantity demanded, there is excess supply, leading to a downward pressure on the market price. The market price will adjust until the quantity demanded equals the quantity supplied, achieving market equilibrium. At this point, the equilibrium price is lower than the initial market price.

Equilibrium is the point on the graph at which buyer and seller agree with the price and quantity…

Answered: 7 If, for a product, the quantity…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A change from Point B to Point C represents a(n): B E Price D Quantity O decrease in supply. O increase in quantity supplied. O increase in supply. O decrease in quantity supplied. 52 50
According to the law of supply, assuming other factors are held constant: as the supply of bread increases, the price of bread will also increase. O as the supply of bread increases, the price of bread will decrease. as the price of bread increases, the quantity of bread supplied will increase. as the price of bread increases, the quantity of bread supplied will decrease.
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A change in "demand" of a good is caused by demanded" of a good is caused by a change in "quantity O a change in the price of the good; a change in the price of a complement. O a price ceiling; a change in the price of the good. O a change in the price of a substitute; a change in the price of the good. O a change in the price of a complement; a change in the price of a substitute.
When the demand curve increases more than the supply curve increases: O Price increases, quantity decreases. O Price decreases, quantity decreases. Price increases, quantity increases. O Price decreases, quantity increases.
Answer both correctly. I ll rate accordingly. Typed answer please.
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Price changes occur in the market when: Disruptions happen in the market O All things are equal Ceteris paribus O Supply equals demand
The price of cereal, a complement good, has decreased. At the same time, a new and improved pasteurization process makes milk production more efficient. Given these two effects, what can we say about the equilibrium price and quantity of milk? O Equilibrium quantity will increase; the effect on price is ambiguous. Equilibrium price will increase; the effect on quantity is ambiguous. O Equilibrium price will decrease; the effect on quantity is ambiguous. O Equilibrium quantity will decrease, equilibrium price will increase.
A change in price of a good or service typically causes O a new equilibrium price O a change along the supply curve the supply curve to shift O a decreased demand for that specific good or service.
Which of the following causes for an increase in the supply of a product? O a. An increase in the cost of production O b. An increase in the subsidy O c. All of the options o d. An increase in the rate of tax
Which of the following might result in a rise in the equilibrium price of chewing gum? O Chewing gum is a normal good and consumers' incomes fall O Chewing gum is an inferior good and consumers' incomes rise O The price of artificial sweetener used in the production of chewing gum rises O Chewing gum and bubble gum are substitute goods for each other and the price of bubble gum falls

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