Name:yee 1. Which of the following is true about how the \"invisible hand\" infl

Question

Name:yee 1. Which of the following is true about how the "invisible hand" influences economic activity through prices when a product has higher demand than supply? 11. 27. 2017 a. The price must decrease, causing more buyers to buy and less sellers to sell. b. e price must decrease, causing more buyers to buy and more sellers to selli The price must increase, causing less buyers to buy and more sellers to sell. The price must increase, causing less buyers to buy and less sellers to sell. Th C. d. 2. A rational decisionmaker ignores marginal changes and focuses instead on "the big picture." b. ignores the likely effects of government policies when he or she makes choices c. takes an action only if the marginal benefit of that action exceeds the marginal cost of that action takes an action only if the combined benefits of that action and previous actions exceed the combined costs of that action and previous actions. d. 3. Almost all economists agree that rent control a. has no effect on the rental income of landlords. b. c. is a very inexpensive way to help the most needy members of society d. adversely affects the availability and quality of housing. allows the market for housing to work more efficiently. Assumet Table 1 Number of Units Produced in an Hour Milk Oats England 10 6 Holland 9

Explanation / Answer

Question 1). Answer :- Option a). The price must decrease, causing more buyers to buy and less sellers to sell.

Question 2). Answer :- Option c). takes an action only if the marginal benefit of that action exceeds the marginal cost of that action.

Question 3). Answer :- Option d). Adversely affects the availability and quality of the housing.

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