1. If sellers expect a higher price in the near future, with no change in demand
ID: 1115306 • Letter: 1
Question
1.
If sellers expect a higher price in the near future, with no change in demand, there will be __________ in equilibrium price and __________ in equilibrium quantity.
an increase, an increase
an increase, a decrease
a decrease, an increase
a decrease, a decrease
no change, no change
4. A market will experience a decrease in price and a decrease in quantity if
buyers expect a higher price in the future.
buyers have an increase in income for a normal good.
buyers have an increase in income for an inferior good.
the price of a complement-in-consumption decreases.
the price of a substitute-in-consumption increases.
5. Shifts of the demand and supply curves result in a total of ___ comparative static analyses of the market.
1
2
4
8
12
6.
A shift of the supply curve causes:
equilibrium price and equilibrium quantity to change in the same direction.
equilibrium price and equilibrium quantity to change in opposite directions.
an indeterminant change in equilibrium price and an increase in equilibrium quantity.
an indeterminant change in equilibrium price and a decrease in equilibrium quantity.
an indeterminant change in equilibrium price and equilibrium quantity.
7.
Equilibrium quantity increases when:
demand and supply increase.
demand and supply decrease.
demand increases and supply decreases.
demand decreases and supply increases.
neither demand or supply change.
10.
If buyers decide that they don't like a good quite as much, there will be a(n):
increase in demand.
decrease in demand.
increase in supply.
decrease in supply.
no change in demand or supply.
Explanation / Answer
Answer.)
Q1.) an increase, a decrease
Q4.) buyers have an increase in income for an inferior good.
Since inferior goods have negative income elasticity, therefore, there would be a decrease in price and a decrease in quantity if buyers have an increase in income for an inferior good.
Q5.) 4
Q6.) equilibrium price and equilibrium quantity to change in the same direction.
Since supply has a positive relationship between price and quantity supplied, ceteris paribus, therefore, equilibrium price and equilibrium quantity would change in the same direction if supply shifts.
Q7.) demand and supply increase.
Equilibrium quantity would increase unambiguously only when there is an increase in demand and supply.
Q10.) decrease in demand.
Consumers preferences ( likes or dislikes) significantly affect the demand for the the product.
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