Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 7, Problem 4MCQ
To determine
To select:
The appropriate option for the given statement.
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Which of the following causes for an increase in the supply of a product?
a.
An increase in the rate of tax
b.
An increase in the cost of production
c.
An increase in subsidy
d.
A decrease in the number of sellers
Two things happen simultaneously. Both supply and demand of the good decrease. But demand decreases by more than supply does. What will happen to the equilibrium price on this market?
A.
The price will increase
B.
The price will decrease
C.
The change in price will be ambiguous
When a market is at equilibrium,
A
B
C
D
sellers are willing to sell less than consumers are willing to buy.
sellers are willing to sell more than consumers are willing to buy.
neither consumers nor producers are satisfied with the quantity traded.
both producers and consumers are satisfied with the quantity traded.
Chapter 7 Solutions
Foundations of Economics (8th Edition)
Ch. 7 - Prob. 1SPPACh. 7 - Prob. 2SPPACh. 7 - Prob. 3SPPACh. 7 - Prob. 4SPPACh. 7 - Prob. 5SPPACh. 7 - Prob. 6SPPACh. 7 - Prob. 7SPPACh. 7 - Prob. 8SPPACh. 7 - Prob. 9SPPACh. 7 - Prob. 10SPPA
Ch. 7 - Prob. 11SPPACh. 7 - Prob. 1IAPACh. 7 - Prob. 2IAPACh. 7 - Prob. 3IAPACh. 7 - Prob. 4IAPACh. 7 - Prob. 5IAPACh. 7 - Prob. 6IAPACh. 7 - Prob. 7IAPACh. 7 - Prob. 8IAPACh. 7 - Prob. 9IAPACh. 7 - Prob. 1MCQCh. 7 - Prob. 2MCQCh. 7 - Prob. 3MCQCh. 7 - Prob. 4MCQCh. 7 - Prob. 5MCQCh. 7 - Prob. 6MCQCh. 7 - Prob. 7MCQCh. 7 - Prob. 8MCQ
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- If the price of a product is below the equilibrium price, the result will be A. A shortage of the good. B. A surplus of the good. C. A decrease in the supply of the good. D. An increase in the demand of the good.arrow_forwardIdentify what happens to equilibrium price and quantity in each of the following cases:a. Demand rises, and supply is constantb. Supply rises and demand is constantc. Decrease in demand and increase in supplyd. Decrease in both demand and supplye. Increase in demand and decrease in supplyarrow_forwardK The table shows the demand and supply schedules for chocolate bars. What is the situation in the chocolate bar market if the price is $1.55 a chocolate bar? How does the market reach equilibrium? If the price is $1.55 a chocolate bar, the quantity supplied the quantity demanded and chocolate bars exists. OA. is less than; a shortage OB. is greater than; a shortage C. is greater than; a surplus D. is less than; a surplus O E. equals; neither a shortage nor a surplus of Price (dollars per chocolate bar) 1.30 1.55 1.80 2.05 2.30 Quantity demanded Quantity supplied (bars per day) 600 525 450 375 300 330 390 450 510 570arrow_forward
- ________When there is a shortage of citrus fruit, the economic forces of supply and demand would suggest that a. price will stay constant. b. price will decrease. c. price will increase. d. price, all things remaining equal, will increase. e. it will take a long time before the shortage is felt in the market.arrow_forwardWhat happens to the equilibrium price and quantity of gasoline during a severe hurricane in the Gulf of Mexico? A. Price decrease, Quantity decrease B. Price decrease, Quantity increase C. Price increase, Quantity decrease D. Price increase, Quantity increasearrow_forwardSuppose the demand of a product decreases. What will be the effect on the market equilibrium price and quantity if supply is perfectly inelastic? If supply is perfectly inelastic, then A. the equilibrium price will decrease and the equilibrium quantity will decrease. B. the equilibrium price will decrease and the equilibrium quantity will not change. C. the equilibrium price will not change and the equilibrium quantity will not change. D. the equilibrium price will increase and the equilibrium quantity will increase.arrow_forward
- A rise in the wages paid to workers in the beef industry will: A. Decrease both the supply and demand for beef, lowering the equilibrium price but raising the equilibrium quantity of beef. B. Increase the demand beef, raising the equilibrium price and quantity of beef. C. Decrease the supply of beef, raising the equilibrium price and quantity of beef. D. Decrease the supply of beef, raising the equilibrium price but lowering the equilibrium quantity of beef. E. Decrease the demand for beef, lowering the equilibrium price and quantity of beef.arrow_forwardA decrease in demand will cause a decrease in the equilibrium quantity and the equilibrium price. a. True b. Falsearrow_forwardQUESTION 23 A university's football stadium is never more than half-full during football games. This indicates A. nothing about the equilibrium price B. the ticket price is below the equilibrium price C. the ticket price is above the equilibrium price D. the ticket price is at the equilibrium pricearrow_forward
- An increase in the ________ of a pumpkins to a decrease in ________ that leads to a ________. a. quantity; supply; change in demand b. demand; quantity demanded; change in supply c. supply; demand; change in price d. price; quantity demanded; movement along the demand curvearrow_forwardIdentify what happens to equilibrium price and quantity in each of the following cases a. Demand rises and supply is constant b. Demand falls and supply is constsnt c. supply rises and demand is constant d. supply falls and demand is constant e. Demand rises by the same amount that supply falls f. demand falls by the same amount that supply rises g Demand falls less than supply rises h. demand rises more than supply rises i. demand rises less than supply rises j. demand falls more than supply falls k. demand falls less than supply fallsarrow_forwardIdentify what happens to equilibrium price and quantity in each of the followingcases:a. Decrease in both demand and supplyb. Increase in demand and decrease in supplyarrow_forward
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