17. The point at which the supply curve and the demand curve intersect is called
ID: 1121506 • Letter: 1
Question
17. The point at which the supply curve and the demand curve intersect is called: A Equilibrium, because quantity demanded equals quantity supplied so there is no tendency for price to change. B. Equilibrium, because quantity demanded exceeds quantity supplied so there is a shortage C.Equilibrium, because quantity supplied exceeds quantity demanded so there is a surplus D. Irrelevant, because real-world prices never reach this point 18·The more the current price exceeds the equilibrium price, the: A. Greater the resulting shortage will be. B. Smaller the resulting shortage will be. C. Greater the resulting surplus will be. D. Smaller the resulting surplus will be. 19. Honey and jam are substitute products. If the price of honey increases, the demand for: A. Honey will increase. B. Honey will decrease, causing its price to fall. C. Jam will increase, casing the price of jam to increase as well. D. Jam will decrease, causing the price of jam to fall. 20. Taking explicit account of a rival's expected response to a decision you are making is called A. economic decision making B. monopolistic decision making C. strategic decision making. D. competitive decision making. 21. New York City has been experiencing a housing emergency for quite some time. Apartments are difficult to come by. In fact, the vacancy rate has been below 5 percent since World War II. The most likely cause of the housing emergency is: A. a price floor on rent higher than equilibrium price. B. a price ceiling on rent lower than equilibrium price. C. too high incomes in New York City D. a lack of a rationing mechanism to distribute existing apartments. 22. In general, the greater the elasticity, the A. Smaller the responsiveness of price to changes in quantity B. Smaller the responsiveness of quantity to changes in price. C. Larger the responsiveness of price to changes in quantity D. Larger the responsiveness of quantity to changes in price. 23. If quantity demanded falls by 25 percent when price rises by 50 percent, demand is said to be: A. Elastic. B. Inelastic. C. Proportional D. Unit elastic.Explanation / Answer
17) The answer is A .) equilbruim , becaause quantity demand is equal to quantity supplied and there is no tendency to change the price.
because, market equilbruim is achieved by intersection of demand and supply.a equilbruim is the condition where quantity demanded is equal to quantity supplied at a given price level .
18) THe answer is C -) Greater the resulting surplus will be.
becasue, when the price increase more than equilbruim price, the quantity demanded falls and quantity supplied rise. this lead to surplus.
19) The answer is C -) jam will increase ; cause the price of jam to increase as well.
because susbsitute goods are those who have positive cross elasticity of demand. the demand for good 1 increase with increase in price of another good
20) please uplaod it again. its against chegg policy. chegg policy to answer onle 1 question.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.