ne correct statement for each question. (a) Suppose supply decreases and demand
ID: 1114502 • Letter: N
Question
ne correct statement for each question. (a) Suppose supply decreases and demand increases. What effect will this have on the price? (A) It will all. (B) It will rise. (C) It may rise or fall. (D) It will remain the same. (b) Suppose that supply increases and demand decreases. What effect will this have on price and quantity? (A) Price will increase and quantity may rise or fall (B) Price will decrease and quantity will increase. (C) Price will decrease and quantity will decrease. D) None of the statements associated with this question are correct. (c) Consumer-consumer rivalry (A) increases the negotiating power of consumers in the marketplace. (B) reduces the negotiating power of producers in the marketplace. (C) reduces the negotiating power of consumers in the marketplace (D) increases the likelihood of government intervention in the marketplace.Explanation / Answer
Ans:
a) Option C
It may rise or fall
The decrease in the supply will shift the supply curve to the left and the increase in the demand will shift the demand curve to the right and the resulting effect on the price is that it may rise or fall.
B) Option C
Price will decrease and quantity will decrease.
The increase in the supply will shift the supply curve to the right and the decrease in the supply will shift the demand curve to the left. The resulting effect is that the price and quantity will decrease.
C) Option C
reduces the negotiating power of consumers in the market place.
Consumer-Consumer Rivalry means consumers compete with each other for products and this result in consumer pays more than he wants to pay for the product and thus reducing the negotiating power of consumers in the market place.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.